The BSE benchmark Sensex tanked over 1,000 points and the NSE Nifty cracked below the key 17,000-level in opening deals on Tuesday, mirroring a rout in the global equity markets.
The Sensex was trading 1,015 points or 1.76 per cent lower at 56,668.60, and the Nifty quoted 285.40 points or 1.66 per cent lower at 16,921.25 — extending their losses to the fifth session in a row.
All the 30 Sensex constituents were trading with significant losses.
“Escalations in Ukraine tensions with Russia recognising two pro-Russian rebel regions have aggravated the crisis. The economic consequences are already visible in higher crude and gold prices,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
The biggest macro headwind for India is crude racing to USD 97 a barrel, he said, adding that the inflationary consequence of this will force the RBI to abandon its dovish monetary stance.
Continuing their selling spree, foreign institutional investors sold shares worth ₹2,261.90 crore in the Indian capital market on Monday, exchange data showed.
Other Asian bourses on Tuesday followed the overnight Wall Street rout and massive selloffs in European equities triggered by the Russia-Ukraine standoff.
In a sign of aggravating geopolitical crisis in the eastern Europe, Russian President Vladimir Putin has recognised the independence of separatist regions in eastern Ukraine.
Putin’s announcement comes after a meeting of the Presidential Security Council and paves the way for Russia to openly send troops and weapons to the long-running conflict pitting Ukrainian forces against Moscow-backed rebels.
Meanwhile, India has also expressed deep concerns over the escalation of tension along the Russia-Ukraine border and said the developments have the potential to undermine peace and security of the region.
Tracking the Ukraine crisis, Brent crude futures rose 4 per cent to USD 97.35, the highest since September 2014. US stocks fell over 2 per cent on Tuesday.