Sensex loses over 380 points as Russia-Ukraine tensions dampen market sentiments
The 30-share BSE index had slipped by nearly 1,300 points during intra-day trading.
Equity benchmark indices extended losses on Tuesday as Sensex and Nifty suffered slipped more than 0.6% each. The 30-share BSE index lost 382.92 points to close at 57,300.68. The broader 50-share NSE Nifty finished at 17,092.20, down 114 points from the previous closing mark.
All key sectoral indices ended with losses. The Nifty Realty index was down 3% while Nifty Pharma, IT, Metal, and Bank indices suffered lost in the range of 1% and 1.5%.
Sensex had dropped nearly 1,300 points in Tuesday’s intra-day trading, but recoevered most of the losses as investors bought stocks of HDFC, Mahindra & Mahindra, Infosys, Kotak Bank and Bajaj Finserv, the Business Standard reported.
Experts said that the plunge was a result of negative sentiments in the global markets due to the escalation of tensions between Russia and Ukraine. Russian President Vladimir Putin has ordered troops to be deployed in separatist regions of eastern Ukraine, raising fears of an imminent invasion of Ukraine.
“The economic consequences are already visible in higher crude and gold prices,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, according to The Indian Express.
Vijaykumar added that rise in crude oil prices was a major concern for India.
“The inflationary consequence of this will force the Reserve Bank of India to abandon its dovish monetary stance. Globally stock markets have turned weak,” he said.