Sensex tanks 1,000 points, Nifty below 17,000 amid Russia-Ukraine tensions
Indian markets started off on a weak note with the Sensex plunging by over 1,000 points and Nifty by 373 points in the opening session on Monday. Both S&P BSE Sensex and Nifty50 fell more than 2% each in early trade. At 10:50 am, 29 out of 30 shares on the Sensex were trading in red. Here are more details.
Reason behind heavy losses
The heavy losses came due to escalating geopolitical tensions between Russia and Ukraine. Crude oil prices are also soaring amid concerns that Russia may soon invade Ukraine and create a surprise pretext for an attack. The heightened tensions have rippled through global financial markets, spurring demand for safe-haven assets. Several Asian markets that opened before India saw a similar decline.
Top gainers, losers
On the BSE Sensex, TCS was the only gainer while all other stocks were in the red zone. SBI, Tata Steel, Bharti Airtel, and IndusInd Bank were among the major losers. The gainers' list on Nifty included ONGC (which touched its 52-week-high on Monday), Divis Labs, and TCS. M&M, SBI, ITC, L&T, and ICICI Bank were among the major losers on Nifty.
Sensex fell nearly 1,500 points in pre-open session
The pressure of the Ukraine crisis on the market was visible from the pre-open session itself. The BSE Sensex was down nearly 1,500 points or 2.46% in the pre-open session. As soon as the market session started, the Sensex opened about 1,200 points lower. Within minutes, it fell over 1,500 points. Although it slightly recovered later, it is still trading in red.
Crude oil on 7-year-high
Crude oil has gone to a seven-year high due to the Ukraine crisis. In early trade, Brent crude futures were at $95.56 a barrel, up $1.12, or 1.2%. Analysts fear that crude oil may cross the level of $100 per barrel. If this happens, it will put a heavy burden on the growth of the global economy.
Russia-Ukraine crisis to have a short-term impact: Expert
"The market is under downward pressure due to the looming threat of war. It is likely to have a short-term impact since the risk of an actual elongated war between two nuclear powers is quite limited," Mohit Ralhan, Managing Partner, TIW Capital Group said.
Sensex closed 1.31% lower on Friday
Notably, domestic markets didn't perform well last week either. The boom in the market due to the Budget has completely disappeared. On Friday, the market had nosedived by 1,000 points. Later, there was limited recovery and the Sensex fell 773.11 (1.31%) to close at 58,152.92 points. Similarly, Nifty was down 231.10 points (1.31%) and closed at 17,374.75.
