Equity markets extended their losses on Monday as benchmark indices Sensex and Nifty lost nearly 3% each.
The 30-share BSE Sensex fell 1,747 points to end at 56,405, while the 50-share NSE Nifty closed at 16,842 after losing 531 points.
Experts said that the plunge was a result of negative sentiments in the global markets due to escalation of tensions between Russia and Ukraine. Russia has amassed an estimated 1,00,000 troops along Ukraine’s border, raising fears of an invasion.
“Sentiments have turned very negative for the short-term with the heightened tension over the Ukraine crisis,” Dr VK Vijayakumar, chief investment strategist at financial consultation firm Geojit Financial Services told the Economic Times.
Vijaykumar added that higher crude oil price was another major concern for India. “If crude remains at levels of $95 [about Rs 7,181] for an extended period of time, the RBI will be forced to revise upwards its 4.5% CPI [consumer price index or retail] inflation projection for FY23 [financial year 2022-’23,” he added.
During Monday’s trading session, all major sectoral sub-indices faced losses. The Nifty Bank, Auto, Media and Realty sub-indices suffered losses ranging between 3.86% to 5.29%.
Shares of HDFC, ICICI Bank, Tata Steel, Bharti Airtel, Kotak Bank, Dr Reddy’s Laboratories, Bajaj Finserv made losses in the range of 1.78% to 5.49%.