New Delhi: Within less than an hour of trading on Thursday, investors’ wealth sank by more than Rs 8 lakh crore, as Russia’s attack on Ukraine pushed stock markets deep into the red.
Amid investors getting spooked by the escalating tensions between Ukraine and Russia, the market capitalisation (MCap) of the BSE-listed firms crashed to Rs 2,47,46,960 crore at 10.15 am, according to a report by the PTI.
During close of trade on Wednesday, the market capitalisation, an indicator of notional wealth of investors, was at Rs 2,55,68,668 crore. This reflects a wealth erosion of more than Rs 8.2 lakh crore.
Domestic equity benchmarks, Sensex and Nifty, crashed over 3 per cent in early morning deals on Thursday following massive selloffs in global share markets after Russia announced military operation in Ukraine.
At 9.45 am, the BSE Sensex tanked 2,053 points to 55,178, while the NSE Nifty declined to 16,490, down 572 points.
Apart from this, cr’sude oil surge to $100 a barrel for the first time since 2014 represents a double-blow to the world economy by further denting growth prospects and driving up inflation.
That's a worrying combination for the US Federal Reserve and fellow central banks as they seek to contain the strongest price pressures in decades without derailing recoveries from the pandemic.
Futures in London jumped as much as 3.3 per cent as Russia's dramatic escalation of the Ukraine crisis sparked fears of a disruption to the region's critical energy exports.
At 1.15 pm, Sensex was down 1,926 points to 55,305. The broader Nifty was at 16,483, down 580 points.
On Thursday morning, Russian President Vladimir Putin announced a military operation in eastern parts of Ukraine. In a televised address, Putin said the responsibility for bloodshed lies with the Ukrainian 'regime'. Putin warned other countries that any attempt to interfere with the Russian action would lead to consequences they have never seen.
Meanwhile, US President Joe Biden has warned that the world will hold Russia accountable for the death and destruction due to the 'unprovoked' and 'unjustified' attacks on Ukraine and the US and its allies will respond in a 'united and decisive' way.