NEW DELHI: The ongoing conflict between Russia and Ukraine rocked the markets again on Wednesday with benchmark BSE Sensex A drop of over 750 points.
The BSE 30-share index closed 778 points or 1.38 per cent lower at 55,469; while the broad NSE Nifty It closed at 16,606, down 188 points or 1.12 per cent.
Maruti, Dr Reddy’s, Asian Paints, ICICI Bank and HDFC Twins were the top losers in the Sensex pack, falling up to 6 per cent.
While Tata Steel, Titan, Reliance and Nestle were the major gainers, rising up to 5.54 per cent.
Nifty Auto, Private Bank and Bank’s sub-indices fell up to 2.96 per cent on the NSE platform.
Here are the top reasons:
* escalating war situation
Russian forces captured a Ukrainian port on Wednesday as soldiers battled for another urban centre. Ukraine’s President Volodymyr Zelensky said Moscow wants to “wipe out” its country.
As the conflict intensified on the seventh day of the invasion, the Russian military said it had taken control of the Black Sea port of Kherson in southern Ukraine.
Russian paratroopers also landed in Kharkiv, Ukraine’s second largest city, triggering street skirmishes, the Ukrainian military said.
*Oil at record high*
Oil prices rose despite an agreement at the International Energy Agency (IEA) by the United States and other major governments to release 60 million barrels from strategic reserves to stabilize supplies.
In afternoon Asian trade, Brent traded higher at $113.02 and WTI at $111.50.
Disruptions in supply chains have raised fears that top oil exporter Saudi Arabia may sharply increase crude oil prices for Asia in April.
* Weak global signal
Global stock markets fell and oil prices rose by more than $7 a barrel as Russian forces stepped up attacks on Ukrainian cities.
Frankfurt, Shanghai, Tokyo and Paris fell as President Vladimir Putin’s aggression fueled fears of a global economic turmoil.
On Wall Street, the Dow Jones Industrial Average lost 1.8 percent on Tuesday. The Nasdaq Composite fell 1.6 percent.
In Asia, the Nikkei 225 fell 1.7 per cent to 26,393.03 in Tokyo and the Shanghai Composite Index fell 0.1 per cent to 3,484.19.
*Fear of inflation
According to economists, Asian countries are less vulnerable to war than Europe, but countries that need imported oil will be hit by rising global prices, inflationary pressures and disappointing trade and consumer activity.
An attack on Ukraine and threats from Russia in response to Western sanctions have also stirred up global markets for wheat and other commodities.
Russia is the number 2 global crude oil exporter after Saudi Arabia. Any potential disruption in supply could drive up prices and add to persistent inflationary pressures around the world.
Prices of wheat, of which Russia and Ukraine are both important exporters, have risen more than 20 percent from a month ago.
Investors are moving money into safe-haven assets such as government bonds, raising their market value and reducing the yield, or the difference between the current price and the payout at maturity.
The yield on the 10-year Treasury was steady at 1.73 percent after falling on Tuesday by an unusually wide margin from Monday’s 1.83 percent.
*GDP misses estimates
Data released by the government showed that India’s gross domestic product (GDP) missed estimates in the third quarter.
The country’s economy expanded by 5.4 per cent in the October-December quarter a year ago, according to official data, missing economists’ forecast of 6 per cent growth.
(with inputs from agencies)
The BSE 30-share index closed 778 points or 1.38 per cent lower at 55,469; while the broad NSE Nifty It closed at 16,606, down 188 points or 1.12 per cent.
Maruti, Dr Reddy’s, Asian Paints, ICICI Bank and HDFC Twins were the top losers in the Sensex pack, falling up to 6 per cent.
While Tata Steel, Titan, Reliance and Nestle were the major gainers, rising up to 5.54 per cent.
Nifty Auto, Private Bank and Bank’s sub-indices fell up to 2.96 per cent on the NSE platform.
Here are the top reasons:
* escalating war situation
Russian forces captured a Ukrainian port on Wednesday as soldiers battled for another urban centre. Ukraine’s President Volodymyr Zelensky said Moscow wants to “wipe out” its country.
As the conflict intensified on the seventh day of the invasion, the Russian military said it had taken control of the Black Sea port of Kherson in southern Ukraine.
Russian paratroopers also landed in Kharkiv, Ukraine’s second largest city, triggering street skirmishes, the Ukrainian military said.
*Oil at record high*
Oil prices rose despite an agreement at the International Energy Agency (IEA) by the United States and other major governments to release 60 million barrels from strategic reserves to stabilize supplies.
In afternoon Asian trade, Brent traded higher at $113.02 and WTI at $111.50.
Disruptions in supply chains have raised fears that top oil exporter Saudi Arabia may sharply increase crude oil prices for Asia in April.
* Weak global signal
Global stock markets fell and oil prices rose by more than $7 a barrel as Russian forces stepped up attacks on Ukrainian cities.
Frankfurt, Shanghai, Tokyo and Paris fell as President Vladimir Putin’s aggression fueled fears of a global economic turmoil.
On Wall Street, the Dow Jones Industrial Average lost 1.8 percent on Tuesday. The Nasdaq Composite fell 1.6 percent.
In Asia, the Nikkei 225 fell 1.7 per cent to 26,393.03 in Tokyo and the Shanghai Composite Index fell 0.1 per cent to 3,484.19.
*Fear of inflation
According to economists, Asian countries are less vulnerable to war than Europe, but countries that need imported oil will be hit by rising global prices, inflationary pressures and disappointing trade and consumer activity.
An attack on Ukraine and threats from Russia in response to Western sanctions have also stirred up global markets for wheat and other commodities.
Russia is the number 2 global crude oil exporter after Saudi Arabia. Any potential disruption in supply could drive up prices and add to persistent inflationary pressures around the world.
Prices of wheat, of which Russia and Ukraine are both important exporters, have risen more than 20 percent from a month ago.
Investors are moving money into safe-haven assets such as government bonds, raising their market value and reducing the yield, or the difference between the current price and the payout at maturity.
The yield on the 10-year Treasury was steady at 1.73 percent after falling on Tuesday by an unusually wide margin from Monday’s 1.83 percent.
*GDP misses estimates
Data released by the government showed that India’s gross domestic product (GDP) missed estimates in the third quarter.
The country’s economy expanded by 5.4 per cent in the October-December quarter a year ago, according to official data, missing economists’ forecast of 6 per cent growth.
(with inputs from agencies)