New Delhi, March 7 India's key indices S&P BSE Sensex and NSE Nifty50 settled lower on Monday as international crude oil prices hit a 14-year high amid the Ukraine-Russia war.
The Ukraine crisis pushed Brent crude oil price to $130 a barrel on Monday, which in turn has accelerated FIIs' selling in the Indian equity market.
Sensex settled 2.7 per cent or 1,491 points down at 52,843 points, whereas Nifty 2.4 per cent or 382 points down at 15,863 points.
"As a result (of rising crude prices), the domestic market along with its global peers witnessed a huge sell-off from opening hours. Inflationary pressure is also witnessed in other commodities like gold, aluminium, copper, etc., which will eventually eat away corporate profits in the coming quarters," said Vinod Nair, Head of Research at Geojit Financial Services.
On the stocks front, Indusind Bank, Maruti Suzuki, Axis Bank, Britannia, and Bajaj Finserv were the top five losers among the Nifty 50 companies, declining 8.1 per cent, 6.5 per cent, 6.4 per cent, 6.3 per cent, and 6.2 per cent, respectively.
On the contrary, ONGC, Hindalco, Coal India, Bharti Airtel, and UPL were the top gainers, NSE data showed.
"Higher crude oil prices are leading to weakness in the rupee whereas relentless selling by FIIs is also causing pressure in our market. FIIs' selling has reached above their selling during the global financial crisis," said Parth Nyati, Founder at Tradingo.
"Geopolitical uncertainty is still one of the biggest issues, otherwise we are in a structural bull market where we are seeing the first meaningful correction that will provide great buying opportunities for long-term investors."
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