Ukraine thaws: Equities to rally; commodities to soften

Shikhar Sethi of RBS expects equities to rally and commodities like crude and gold to soften after reports President Vladimir Putin ordering troops that took part in military exercises in central and western Russia to return to base after completing their training. "Any conflict in the Ukraine would lead to upward pressure on oil and gas prices since many pipelines travel through the Ukraine. So, now that the conflict has de-escalated and there is less chance of a war, we see commodity prices softening and equity prices rallying," he told CNBC-TV18 in an interview. Global markets were rattled on Monday following Russia's military advance into Ukraine that prompted world leaders to call for sanctions on Moscow, including measures targeting banks and officials. President Obama said the US was examining economic and diplomatic steps to isolate Moscow, and he called on Congress to expedite assistance for Ukraine.However, India remained relative unscathed as analysts saw very little to no impact of the crisis over the region."I am quite bullish on India now," Benoit Anne, MD & Head of EM Strategy, Societe Generale told CNBC-TV18. "I see positive momentum in terms of credibility of policymaking. I see yields being very attractive on the local bond market and volatility has come off quite a bit on the currency side. So to me the green light is turning on to be bullish on India provided that the elections go smoothly," he said.

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