Sensex crashes over 1,600 points amid Ukraine crisis, Nifty below 15,800; auto, bank stocks drag

The Nifty traded lower by 2.83 percent or 459.95 points down at 15,785.40 points

March 7, 2022

Stock Markets: Sensex, Nifty crash as crude prices soar

India’s key indices — S&P BSE Sensex and NSE Nifty50 — fell sharply during the opening session on Monday amid skyrocketing crude oil prices. Notably, the Ukraine crisis pushed Brent crude oil price to $130 a barrel on Monday.

Consequently, at 10 a.m., Sensex was 2.79 percent or 1,515.98 points down at 52,817.83 points from its previous close. The Nifty traded lower by 2.83 percent or 459.95 points down at 15,785.40 points.

As of 10:51 am, the benchmark BSE Sensex crashed 1,622 points or 2.98 percent to 52,712; while the broader NSE Nifty dived 456 points or 2.81 percent to 15,789.

The Indian equity indices staged a huge gap-down opening amid the ongoing Russia-Ukraine war. Crude prices soared and global shares sank as the risk of a U.S. and European ban on Russian oil and delays in Iranian talks triggered what was shaping up as a major stagflation ARY shock for world markets.

The trend is expected to trigger an inflationary trend and ultimately a reversal in monetary policy stand. Besides, it has accelerated FIIs’ selling in the Indian equity market.

“On Monday, Indian markets fell for the third day in a row amid rising geopolitical tensions after Ukrainian officials announced Russian forces had taken control of the Zaporizhzhia nuclear power station,” said Likhita Chepa, Senior Research Analyst, CapitalVia Global Research.

“Brent Crude rose above $130 per barrel in early trade, the most since 2008, amid heightened geopolitical tensions, and markets began with a gap-down today.”

Most of the sector gauges — compiled by the National Stock Exchange — were trading in the red. Nifty Auto and Nifty Bank were underperforming the index by falling as much as 4.38 percent and 3.69 percent, respectively, in early trade. However, Nifty Metal moved as much as 0.47 percent higher.

[With Inputs from IANS]

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