The Indian stock market key indices– Sensex and Nifty, plummeted almost 5% on Thursday as oil prices flamed above $100 a barrel-mark for the first time in eight-year after Russia announced a military operation in Ukraine to protect rebels in the country’s east, known as the Donbas area.
The Nifty 50 index of the National Stock Exchange ( NSE) tanked 815.30 points or 4.78% to 16,247.95 points, plunging more than its previous day’s close of 17,063.25 points.
The 30-scrip BSE Sensex tanked over 2,700 points or 4.72%, to close at 54,529.91.
Stock markets saw a sharp sell-off across the world after Moscow announced “military operations to demilitarise” Ukraine.
Russian President Vladimir Putin in a televised address said he is responding to the threats coming from Ukraine. Further saying, Russia does not aim to occupy Ukraine, and it is the Ukrainian regime that should be responsible for the bloodshed. Putin alerted other countries that if they try to interfere with Russian action would have unforeseen consequences. He blamed the US and its allies for not paying heed to Russia’s demand to prevent Ukraine from becoming a part of NATO and offer Moscow security guarantees.
Oil prices, for the first time since 2014, exceeded the $100 per barrel mark. This will have devastating implications on the cost of living, with energy, fuel and food prices hiking to new levels.
Also Read: Russia- Ukraine conflict; oil price surges above $90 per barrel. Will it affect the Indian economy?
Finance Minister Nirmala Sitharaman expressed her concern that if the Ukraine-Russia crisis escalates and oil prices soar high, then India’s financial stability would be in jeopardy.
Traders were under huge selling pressure, and on top of that, it was a day of monthly F&O expiry, the last Thursday of the month.
On NSE, IndusInd Bank plunged8.45% to close at Rs 870.35. Mahindra & Mahindra tanked 6.32% to end the session at Rs 796.60. Tata Motors tumbled 10.71% to close at 425.90.
The BSE smallcap and midcap indices saw a huge bloodbath. BSE midcap tanked 1,301.77 points or 5.53%. BSE smallcap plunged 1,555.39 points or 5.77%.
Russian equities fell about 50% on Thursday from their October record high and wiped out more than $150 billion in value.