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Russian assault on Ukraine rattles markets, Indian investors lose Rs 29 lakh crore since February

Russia's aggressive fight to invade Ukraine seems to be turning severe not only for Moscow but also for global growth as there is a possibility that the US and allies including European nations are expected to ban Russian oil and natural gas but without hurting global supply.

March 07, 2022 / 05:59 PM IST

Bears tightened their grip over Dalal Street on March 7, wiping out more than Rs 29 lakh crore of investors' wealth since the beginning of February.

The Russian assault on Ukraine seems to be turning severe not only for Moscow but for the global growth as well with a rising possibility that the US and its European allies may ban Russian oil and natural gas without hurting global supply.

The news has lifted the crude prices to a 13-year high, which is a major cause for concern for emerging markets like India that still imports more than 80 percent of its oil requirement. Every rise in oil price is a big risk for the country as it fuels inflation worries, increases trade deficit and hits corporate earnings and economic growth.

International benchmark Brent crude futures traded 6 percent higher at $125 a barrel at 17:58pm, after hitting an intraday high of $139.13, the highest since 2008, while the US crude topped $130 a barrel intraday on March 7.

Also read - Nifty MidCap100, SmallCap100 turns in bear territory; falls over 20% from high


"Traders may be concerned, as a private assessment decreased India's economic growth prediction for 2022 to 7.8 percent, citing the impact of the Russia-Ukraine conflict on exports as well as rising oil prices producing ripple effects," said Likhita Chepa, Senior Research Analyst at Capitalvia Global Research.

The rupee slipped to a record low of 77.05 a dollar on Monday on the crude oil crisis. "The rupee may weaken more against the US dollar, while rising commodity prices would raise inflation," she said.

The reason behind all these noise related to sanctions imposed by the West is just to push Moscow to take the military forces back from Ukraine and restore peace in Kyiv. But Russia remains aggressive on invading Ukraine, despite strong resistance from the defenders.

Ukraine President Volodymyr Zelenskyy has been asking the West to provide fighter jets and more arms and ammunitions and also appealing foreign nationals to join the army to fight against Russian forces.

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All these concerns further dented market sentiment across the globe. The BSE Sensex fell 1,491 points or 2.7 percent to 52,843 and the Nifty50 broke its crucial 16,000 mark for the first time since July last year, down 382 points to 15,863.

The BSE market capitalisation dropped to Rs 241.1 lakh crore today, against Rs 270.6 lakh crore on February 2.

The broader markets also corrected in line with frontliners. The Nifty Midcap 100 and Smallcap 100 indices declined 2 percent each.

Auto, banking, financial services and realty witnessed the maximum pain, falling 4-5 percent, while metal bucked the trend with 2.1 percent gains.

To Know All Live Updates on Russia-Ukraine War, Click Here

"Global economies are facing a heightened risk of a recession this year as Russia’s invasion of Ukraine severely disrupts supply chains and has flared up commodity prices since the conflict began. Brent crude oil prices have climbed by another 10 percent, while important metals like nickel, aluminum and copper prices have also rallied to hit all-time highs," pointed out a report from Emkay Global Financial Services.

The whiff of a ban on Russian oil comes as a brutal blow to the wobbly global economy. "A boycott would put enormous pressure on the already tight supply side. The domestic markets will be watching out for the outcome of the State election results due to be released on March 10," the Emkay report said.

Disclaimer: The views and investment tips expressed by investment experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Mar 7, 2022 01:54 pm
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