Nifty and Sensex down 3.4% as Russia-Ukraine crisis, Moscow Exchange suspended trading, crude oil prices at 7-year high

Today both Nifty and Sensex are down 3.4% in pre-opening. Sectoral indices such as Nifty IT, Nifty Bank, Nifty Auto, and Nifty Metal are also down over 3.5%.

Russia’s President Putin has declared a military action in Ukraine. According to reports, there have been explosions at some places in Ukraine.

US indices such as Dow Jones and Nasdaq also closed lower. Moscow Exchange has also suspended trading in all markets till further notice.

Apart from this, not only the equity market but also the crypto market has seen a sharp fall today.

Amidst this negative news, today the price of Brent Crude oil also hit $ 100 per barrel.

Crude oil price is now at its last 7 year high. This will impact the Indian economy as almost 85% of the crude oil processed by Indian refiners is imported.

This will lead to a rise in inflation, which will make goods and services expensive for the consumer and also impact the government’s target of reducing the fiscal deficit.

A downward trend was also in the US and Asia markets. The US markets also closed in the red yesterday.

In quarter 3 of financial year 22, the Indian GDP grew by 5.4%, while in the previous quarter this number was 8.5%. Lower than expected GDP growth has also negatively impacted the market sentiment.

According to the data of January and February 2022, foreign investors have outflowed capital of Rs 68895 crore from the Indian market.