Fear index hits 20-month high as Russia launches military action against Ukraine

India VIX Index hit a high of 33.97 -- a level last seen on 17 June 2020. At closing, it settled at 31.98, up 30.31 percent from its previous close. The VIX, which tracks investors’ perceptions of volatility for at least a month ahead, is up 107 percent year-to-date.

The Nifty 50 index ended 4.78 percent, or 815.30 points lower at 16,247.95. The BSE-Sensex was down 2702.15 points or 4.72 percent at 54,529.91 points.

The fall in global markets and crude oil hitting over $100 a barrel due to ongoing geo-political tension in the Europe-Russia region and the already prevailing critical global demand-supply position

"We feel that international crude prices will remain at elevated levels (as compared to the levels seen in the last 5-6 years) and thus this will be a major concern for India. Normally higher crude prices lead to a spike in general inflations. Already the headline inflation is near the upper tolerance level of the RBI and WPI inflation is continuing to be in double digits. Further spike in inflation levels would hurt the already stressed or subdued private consumption, which will have a cascading impact on the overall economy. To reduce the vulnerability of high and volatile global crude prices, determined efforts are needed to make the country self-sufficient in energy needs", said Rajnath Yadav Research Analyst  Choice Broking.

Analysts say the repercussion of these actions in terms of impact on commodity prices, including crude, supply disruptions and the sanctions that can be levied by the western nations remains uncertain. Depending on how this plays out, we may see a next leg down or double bottom after a brief recovery, they added