Sensex plunges 1,491 points as crude prices surge amidst war

If crude prices sustain at higher levels, it is likely to impact India’s current account deficit as well as fiscal deficit as the country imports more than 80% of its total requirement, says an analyst

Key stock indices plunged sharply on Monday tracking global cues in he wake of the Russian war on Ukraine and a rapid surge in the crude oil prices that has sent shock waves across the globe.

The S&P BSE Sensex on Monday plummetted 1,491.06 points or 2.74% to 52,842.75.

The fall was led by banking and finance stocks and the top losers included IndusInd Bank which slid 7.63%, Axis Bank (-6.7%), Maruti Suzuki (-6.56%), Bajaj Finance (-6.37%) and Bajaj Finserv (-6.27%).

Sectoral indices showed a mixed trend, wherein telecom, IT, metal and oil & gas ended with gains whereas auto, banks and capital goods were among the top losers. 

The NSE Nifty-50 index breached the psychological mark of 16,000; dropping 382.20 points or 2.35% to 15,863.15.

“Oil prices surged above $130 a barrel for the 1st time since July 2008, following the risk of a U.S. and European ban on Russia’s oil export which accounts for about 10% of global supply,” said Vinod Nair, head of research at Geojit Financial Services.