Sensex nosedives 1,491 points amid jittery global markets, elevated oil prices

International oil benchmark Brent crude surged 6.08% to $125.3 a barrel

March 07, 2022 04:30 pm | Updated 04:30 pm IST - Mumbai:

People examine the Sensex updates on a screen outside the Bombay Stock Exchange (BSE) building, as the market goes down 1700 points, in Mumbai on March 7, 2022.

People examine the Sensex updates on a screen outside the Bombay Stock Exchange (BSE) building, as the market goes down 1700 points, in Mumbai on March 7, 2022. | Photo Credit: PTI

Equity benchmarks received a severe drubbing on Monday, with the Sensex tumbling 1,491 points amid extremely weak global markets and elevated oil prices triggered by the Russia-Ukraine conflict.

Extending its downtrend for the fourth straight session, the 30-share BSE Sensex opened on a weak note and slumped 1,966.71 points or 3.61% to 52,367.10 during the day. It finally managed to recover some of the lost ground and settled at 52,842.75, a decline of 1,491.06 points or 2.74%.

Similarly, the broader NSE Nifty tanked 382.20 points or 2.35% to close at 15,863.15.

"The southward journey is continued in the Indian equity market on the back of intense geopolitical tension where boiling crude oil prices is spooking the investors' sentiment in India. Brent crude is trading near $130 per barrel which is a multi-year high level.

"Higher crude oil prices are leading to weakness in the rupee whereas relentless selling by FIIs is also causing pressure in our market," according to Parth Nyati, founder of Tradingo.

From the 30-share pack, Indusind Bank, Axis Bank, Maruti Suzuki, Bajaj Finance, Bajaj Finserv, UltraTech Cement and Mahindra & Mahindra were the biggest drags, tumbling up to 7.63%.

In contrast, Bharti Airtel, HCL Technologies, Tata Steel and Infosys settled in the green.

Among BSE sectoral indices, realty, bank, finance and auto finished with deep cuts.

Bourses in Hong Kong, Shanghai and Tokyo settled significantly lower.

Stock exchanges in Europe too were trading in the negative zone in the afternoon session.

Meanwhile, international oil benchmark Brent crude surged 6.08% to $125.3 a barrel.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth ₹7,631.02 crore on a net basis on Friday, according to exchange data.

"This week's focus will be on the Russia-Ukraine conflict and its impact on oil prices. On the home front, investors will be watching the outcome of the state elections in five states on March 10," said Mohit Nigam, Head - PMS, Hem Securities.

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