The BSE benchmark Sensex fell below 1,000 points and the NSE Nifty opened below the key 17,000 level on Tuesday, reflecting the failure of global equities.

The Sensex lost 1,015 points, or 1.76%, to end at 56,668.60 and the Nifty lost 285.40 points, or 1.66%, to end at 16,921.25, its fifth straight session of losses.

All 30 Sensex constituents posted significant losses.

“Ukrainian tensions escalated as Russia recognized two pro-Russian rebel regions, exacerbating the crisis. Rising crude oil and gold prices are already having an impact on the economy,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

The biggest macro headwind for India is the rise in crude oil prices to $97 a barrel, he said, adding that the resulting inflationary impact will force the RBI to abandon its dovish monetary stance.

Overseas institutional investors continued to sell aggressively, selling Rs 2,261.90 crore in Indian capital markets on Monday, stock market data showed.

Elsewhere in Asia on Tuesday followed Wall Street’s overnight collapse and a massive sell-off in Europe sparked by the standoff between Russia and Ukraine.

In a sign of a deepening geopolitical crisis in Eastern Europe, Russian President Vladimir Putin recognized the independence of the separatist region of eastern Ukraine.

Putin’s statement came after a meeting of the presidential security council, paving the way for Russia to openly deploy troops and weapons in a protracted conflict between Ukrainian forces and Moscow-backed rebels.

Meanwhile, India has also expressed its deep concern over the escalation of tensions on the Russia-Ukraine border, saying the development has the potential to undermine peace and security in the region.

Amid the Ukraine crisis, Brent crude futures rose 4% to $97.35, their highest level since September 2014. U.S. stocks fell more than 2 percent on Tuesday.

Complete News Source : Hindustan Times