As Russia declares war on Ukraine, $177 billion wiped out from Indian markets in the first hour of trade

• Sensex and Nifty 50 tanked about 3.5% in the early trade on Thursday on news of Russia declaring war on Ukraine.
• Moreover, Indian markets are the worst hit among Asian equity markets.
• While Russia has announced a military operation in Ukraine Russian President Vladimir Putin says he does not aim to occupy Ukraine.

Indian markets crashed on Thursday morning as Russian President Vladimir Putin announced a military operation in Ukraine. Right after the announcement, large explosions were reported in the Ukrainian capital of Kyiv.

Sanctions imposed by the US and other western countries on Russia also did not stop Putin from announcing a war.

The Russia-Ukrainian war is an ongoing and protracted conflict that started in February 2014 over geopolitical issues and the situation has now become dangerous now.

Oil prices, which have been rising constantly in recent weeks over the Russia Ukraine conflict, crossed the $100 per barrel on fear that sanctions could hit Russia’s crude oil export.

Considering India imports more than 80% of its oil requirements, the development is a major drawdown for the country.

Besides, the Russia-Ukraine crisis has a huge impact on Indian households as well as the policymakers. Ukraine and Russia together account for 90% of India’s sunflower oil imports.

Following this, Indian markets were the worst hit among other Asian markets. In fact, the market capitalisation of BSE listed companies got slashed by $177 billion in the first hour of trade.
The news of a full-blown war has badly hit equity markets that were already reeling for reasons like relentless FII selling, expectation of fall in interest rates, high fuel prices and rising inflation.

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