Russian military operations in Ukraine’s eastern regions, which Russia has recognized as independent countries, resulted in carnage on Dalal Street. Sensex registered its 4th worst fall ever.
Almost 90 per cent of stocks ended in red, and investors are losing more than Rs 13 lakh crore in the market value.
BSE Sensex went into a free-fall and went down 2,702.15 points to 54,529.91 or 4.72 per cent. The NSE Nifty50 dropped down 815 points at 16,247.95 or 4.78 per cent. BSE mid-cap and small-cap indices fell in tandem with larger peers.
In the previous session, the BSE market capitalization fell to Rs 246 lakh crore from Rs 256 lakh crore. It was down a hefty Rs 16 lakh crore since February 16, close of Rs 246 lakh crore.
Investors were also concerned about oil prices which soared past $104 for the first time in more than seven years. It is to be noted that Russia accounts for 11 per cent of global crude oil exports. Many experts also believe that the prices could shoot up to $110 per barrel.
Experts said that the Russian economy could not prolong the war for a longer duration due to sanctions that have already been imposed on its economy and important authorities.
Russian currency ruble and its equity markets are already under significant pressure. The Russian stocks are down 30 per cent from their record highs.
A host of countries, including the US, the UK, Germany and Japan, have announced sanctions against Russia, and chances are more sanctions may follow.
The deteriorating Ukraine crisis has pushed global stock markets into correction mode. The safe-haven gold shooting to $1,913 reflects the risks arising from the problem.
The crisis comes as governments struggle to contain runaway inflation fueled by demand as life returns after recent lock-downs. As a result, many fear the fragile global economic recovery could be knocked off course.