Equity markets across the world witness bloodbath amid worsening Russia-Ukraine conflict

• Indian benchmark index Sensex crashed 1,000 points in half an hour amid rising war-like tensions between Russia and Ukraine.
• Asian indices also bled as Russian President Vladimir Putin ordered troops into two separatist regions of Ukraine.
• Expectation of possible disruption in oil exports from major oil producer Russia, which is getting into a fight with Ukraine, pushed oil prices to its highest since 2014.

Rising war-like tensions between one of the largest economies Russia and Ukraine have broken investor confidence across markets.

Along with weak cues from Asian markets, Indian markets witnessed a huge crash in just half an hour of trade.

This comes as Russian President Vladimir Putin ordered troops into two separatist regions of Ukraine, raising concerns of a conflict.

This led to US President Joe Biden prohibiting trade and investment between US individuals and the two breakaway regions of eastern Ukraine. To stop Russia from invading Ukraine western countries have also threatened to impose sanctions.

Considering Russia is one of the world’s top producers of crude oil any western sanctions would disrupt the oil supply from one of the largest producers of oil.

As a result, oil prices have risen sharply with the growing geopolitical tensions between the two countries.
“Escalations in Ukraine tensions with Russia recognising two pro-Russian rebel regions have aggravated the crisis. The economic consequences are already visible in higher crude and gold prices. The situation remains fluid; we don't know whether the tensions will escalate or be contained from now on. The biggest macro headwind for India is crude racing to $97. The inflationary consequence of this will force the RBI to abandon its dovish monetary stance,” reportedly said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

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