The benchmark indices were trading with steep losses in afternoon trade amid weak global cues. All the sectoral indices on the NSE were in the red. Metals, PSU banks and realty shares tumbled. The Nifty was trading below the 17,000 mark.
At 13:25 IST, the barometer index, the S&P BSE Sensex, fell 885.09 points or 1.53% at 56,798.50. The Nifty 50 index lost 287 points or 1.67% at 16,919.65.
Escalating geopolitical tensions between Russia and Ukraine weighed on the sentiment. There are concerns that rising tensions in Eastern Europe will boost crude oil prices and could spark global supply chain disruption, resulting in rising input costs. Thousands of U.S. and European companies do business with suppliers in Russia and Ukraine. Many of them could be at risk during a prolonged military conflict.
In the broader market, the S&P BSE Mid-Cap index fell 1.80% while the S&P BSE Small-Cap index slipped 2.37%.
The market breadth was weak. On the BSE, 435 shares rose and 2859 shares fell. A total of 91 shares were unchanged.
Tata Steel (down 4.51%), TCS (down 3.75%), Tata Motors (down 3.37%), UPL (down 3.32%) and BPCL (down 3.32%) were major Nifty losers.
ONGC was sole gainer in the Nifty pack. It was up 0.43% at Rs 164.10 amid firm crude oil prices.
Global Stocks:
Shares in Asia-Pacific declined on Tuesday, with Hong Kong leading losses among the region's major markets.
The Dow Jones index futures were down 510 points, indicating a weak opening in the US stocks today. US markets were closed for a holiday on Monday.
Russia-Ukraine Crisis:
Russian President Vladimir Putin ordered troops into two separatist regions of eastern Ukraine after announcing Monday evening that he would recognize their independence.
The two self-proclaimed rebel republics of Donetsk and Luhansk, whose independence Moscow recognised on Monday, are situated in the rust belt in eastern Ukraine, and escaped Kyiv's control in 2014. The conflict in the separatist regions began in 2014, when rebels loyal to Russia seized government buildings in Donetsk and Luhansk, beginning a long trench war with Ukrainian forces.
"I believe it is necessary to take a long overdue decision, to immediately recognise the independence and sovereignty of the Donetsk People's Republic and the Lugansk People's Republic," he said, before state television showed Putin signing mutual aid agreements with rebel leaders in the Kremlin.
US and European officials condemned the moves, but a Biden administration official reportedly said Russia's military action did not as yet constitute an invasion that would trigger a broader sanctions package.
Indian Economy:
Union Minister for Finance & Corporate Affairs Nirmala Sitharaman asked the industry leaders to explore ways to further strengthen their sector and help in the post-pandemic revival of economy.
Addressing a post-budget interaction with various industry leaders in Mumbai, the Finance Minister expressed satisfaction about the resilience displayed by the financial markets even during pandemic times.
Sitharaman urged the market participants to strive for efficiency and transparency to help to channelize the resource for productive investment in the most effective manner.
During her opening remarks, the Finance minister asserted that the government wants a sustained recovery. She highlighted that the budget proposals on infrastructure building are an attempt to create the multiplier effect to help the economy. Stating that technology has helped the government make payments to the affected people during the pandemic, Smt Sitharaman said it is also looking at how digital solutions can be deployed in the education and the farming sectors.
She also said that banks will have to be a lot more customer-friendly not in terms of taking adverse risks, but in how they engage with and serve customers.
During the interaction, various ideas and suggestions related to investor awareness, KYC norms, mutual fund penetration, deepening of corporate bonds, commodity derivatives, and effectiveness of the market system were also discussed in detail.
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