Indian Stock Market Worst Performers In Asia As Russia Attacks Ukraine

Photo courtesy: ANI

New Delhi: The Sensex and Nifty plunged more than 4 per cent and the rupee saw its worst drop in over three months on Thursday after Russia attacked Ukraine. The NSE Nifty 50 stock index was down 4.60 per cent at 16,278.15 and the S&P BSE Sensex was 4.53 per cent or 2594 points lower at 54,638.06, after falling as much as 3.6 per cent in its steepest drop since mid-April, 2021, Reuters reported.

The Indian stock market was among the worst performers in Asia. The Nifty and the Sensex are set for their seventh day of losses, their worst run since March 2020, the Reuters report said. The rupee weakened as much as 1 per cent to 75.325 against the dollar, versus Wednesday’s close of 74.555.

When Russia gave recognition to two separatist-controlled regions of Ukraine, the markets braced for more headwinds. But nothing worked when Putin authorised military operations against Ukraine on February 24 morning and Russian forces began making inroads into the East European nation, MoneyControl reported.

The markets couldn’t absorb the shock. A massive sell-off that started in Asian markets spilled over to India and other indices. A reign of panic sent the volatility index, which is also known as the fear index, in India past 30 per cent to a 20-month high.

In India, traders were anticipating the markets to open with a huge correction and the 30-pack BSE Sensex opened with a gap of more than 1,800 points in the morning at 55,418.45. It tanked further to make an intra-day low of 55,147.73 which was 2,084.33 points below Wednesday’s close, registering the biggest intra-day loss so far this year, the report added.

However, experts have advised investors not to panic.

Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers said investors should continue to hold growth stocks and let volatility pass, India Today reported quoting Reuters.

“Markets would be keen to know how the Ukraine crisis evolves and what kind of counter-measures are announced by the West. Post that one could expect markets to stabilise. Investors could add stocks in a staggered manner once the market stabilizes and as a strategy should focus on domestic-oriented businesses for now,” he noted.