Dalal Street seems to be fully gripped by fear of an abrupt end to the economic recovery, with inflation worries boiling over after oil prices skyrocketed due to the escalating tensions between Russia and Ukraine. As a result, the advance-decline ratio and also the upper/lower circuit ratio were largely in the hands of bears on Thursday, February 24, the expiry day for monthly futures and options contracts.
The BSE Sensex tanked 2,702 points or 4.72 percent to 54,530, and the Nifty50 plunged 815 points or 4.8 percent to 16,248. It was the biggest single-day fall since March 16, 2020.
“While the escalated war situation between Russia/Ukraine has led to sharp cuts in key equities across the globe, we believe the crude trajectory will be the key to watch out for going ahead. We don’t expect major sanctions which may drive a big spike in crude, equally harming Europe and the US, or even in terms of aggressive rate hikes leading to slower economic growth,” said Vijay Chandok, managing director and CEO, ICICI Securities.
The fall was so severe that every Sensex stock was beaten down. IndusInd Bank, Mahindra and Mahindra, Maruti Suzuki, Tech Mahindra, Wipro, Asian Paints, Bajaj Finance, HCL Technologies, Tata Steel, UltraTech Cement, Bajaj Finserv, Axis Bank, Bharti Airtel, HDFC Bank, and Tata Consultancy Services corrected in the range of 4-6 percent.