U.S., Russia tensions over Ukarine lead to Indian stocks crash
Overall inflationary trend another reason
New Delhi, Feb. 14 (Delhi Crown): Heavy sell off fuelled by escalating tensions between Russia and the West over Ukarine led a major crash in Indian stock markets on Monday.
While BSE Sensex crashed by nearly 1750 points, NSE Nifty plunged by 531 points. This was Sensex’s biggest single-day drop in Indian stock markets in the past one year, said the market observers.
Tata Steel, HDFC, SBI, ICICI Bank and IndusInd Bank were the biggest laggards on Sensex pack failing up to 5.49%. TCS was the only stock that finished in green, said market sources.
They said that over the past two days, Indian investors in stock markets have lost more than Rs 12.38 lakh crores as Sensex lost 2520 points.
Assistant Vice-President at SMC Securities Saurabh Jain was quoted as saying – “The correction in domestic markets is part of the global phenomenon. Foreign institutional investors are selling due to a high inflationary environment, tensions between Russia and Ukarine. That’s giving jitters to the market.”
Stock markets plunged globally on Monday as well, as fears of a possible Russian invasion of Ukarine mounted.
Russia is one of the biggest oil producers. Any military action that disrupts supplies could send shockwaves through the energy markers and overall global industry. Crude oil prices started to rise after the U.S. govt cautioned its citizens living in Ukarine, leading to fears of military action there.
India’s wholesale price inflation stayed in the double digits in January for the tenth month in a row. RBI Governor cautioned that retail inflation for January is expected to stay near its highest range of 6%.