AstraZeneca up 20%, Tata stocks fall; Nifty, Sensex flat

9:50 am FII view: Michael Kurtz, Nomura says the weekend's developments have broadened the scope for markets to price in the tail-risk of dramatic escalation. "It seems sensible to seek protection in risk-off markets. In the case of EM equities, even these effects may be mitigated by the fact that EM equities had already suffered record outflows over the past 12 months. EMs enter this episode already in a technical position of substantial under-ownership," he said.

Sanaya Tavaria, JP Morgan Chase says, "Our confidence in EM equities continues to build. Tapering concerns are overdone. Fundamentals in the Asian members of the fragile five have improved. Export PMIs in Taiwan and Korea are signaling strengthening demand in developed markets. Our preferred trade remains exposure to accelerating global growth."

9:40 am Ukraine impact:The ongoing Ukraine crisis and the geopolitical tensions in the region will have far reaching effects. Richard Gibbs, Global Head, Macquarie Securities believes risk aversion will be elevated because of weak growth in China and tensions in Crimea, a strategic peninsula going into the Black Sea and Russia’s only access to all weather port.

Crimea was gifted to Ukraine by a Soviet leader about 60 years ago, but tensions simmered in the region when pro-Russia leader Viktor Yanukovych was ousted on February 21. Gibbs however says India need not worry too much as it is well supported by domestic demand. According to him, investors should use every dip to buy into markets like India. He says the country could see opportunistic buying.

9:30 am Buzzing: Shares of AstraZeneca Pharma are locked at 20 percent upper circuit on Monday after the board members said it would consider parent's delisting offer on March 5.

"The board of directors of the company has, on March 01, received a letter from promoter AstraZeneca Pharmaceuticals AB (AZP AB) Sweden, proposing to make a voluntary delisting offer to the public shareholders of the company. The offer is with a view to delist the equity shares of the company from BSE, National Stock Exchange of India and Bangalore Stock Exchange," the company said in its filing.

AZP AB holds 75 percent of the total paid-up share capital of AstraZeneca Pharma.

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The market has opened slightly lower but Nifty is above the 6200. The Nifty is down 11.90 points at 6265.05 and the Sensex is down 43.98 points at 21076.14. About 264 shares have advanced, 166 shares declined, and 29 shares are unchanged.

Sun Pharma, BHEL, Bharti Airtel, Maruti and Infosys are early gainers in the Sensex. Tata group stocks like Tata Motors, Tata Power, TCS are laggards while othe losers in the Sensex include Sesa Sterlite, Dr Reddy's and L&T.

The Indian rupee slipped in the early trade today. It has opened lower by 18 paise at 61.94 per dollar versus 61.76 Friday.

The Japanese yen rose across the board this morning, while investors gave risk currencies such as the Australian dollar a wide berth as Ukraine mobilised for war after Russia's President Vladimir Putin declared he had the right to invade the neighboring country.

Agam Gupta of Standard Chartered said, "Expect rupee in a range of 61.75-62.15/USD for the day."

"Exporters will look to sell on upticks while the nationalised bank demand will protect the downside for the pair," he added.

Ukraine crisis will impact crude as Russia is the world’s biggest oil producer. Crude oil prices rallied over the rising tension after Russian president Vladimir Putin declared he had the right to invade his neighbour.

Meanwhile, Gold has gained more than 1 percent on on escalating geopolitical tensions. Bullion gained nearly 7 percent in February, the biggest monthly rise since July.