Indian stock benchmarks Sensex and Nifty logged their worst performance on Monday, 7 March, since Russia’s invasion of Ukraine, with both closing at a seven-month low.
While Sensex shed 1,491.06 points to 53,842.75 – the first time below 53,000 in seven months – Nifty crashed nearly 400 points to 15,863.15. This is also the first time Nifty closed below 16,000 in seven months.
The Indian rupee also hit its lowest against the US dollar amid the surging oil prices. The rupee opened at 76.94 against the US dollar compared to it closing at 76.17 on 4 March.
Oil prices soared just shy of $140 a barrel after the White House announced that it is considering an embargo on Russian supplies. The rising trend of oil prices is expected to trigger an inflationary trend and ultimately a reversal in monetary policy stand.
Besides, the spike in oil prices has accelerated FIIs selling in the Indian equity market. Consequently, at 10 am, Sensex was 2.79 percent or 1,515.98 points down at 52,817.83 points from its previous close.
At 2:08 PM, Sensex was 3.2 percent or 1,715 points down at 52,619 points, whereas Nifty 2.8 percent or 462 points down at 15,784 points.
"Market is slipping into bearish territory. Investors have to be cautious. There is relative safety in energy due to high energy prices, metals due to high global prices and export segments due to resilient demand and rupee depreciation," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In the afternoon session, Nifty bank, auto, and realty slumped, declining in a range of 5-6 percent, NSE data showed.
(With inputs from IANS.)