The Indian equity benchmarks nosedived on Thursday after Russian President Vladmir Putin announced a military operation in eastern Ukraine, claiming it’s intended to protect civilians. In a televised address early Thursday, Putin said the action comes in response to threats coming from Ukraine. Following Putin's announcement of military action, Japan's Nikkei dropped 2.3 per cent, Hong Kong's hang Seng tumbled 2.6 per cent and South Korea's KOSPI dropped 2.8 per cent.
The Nifty 50 index dropped as much as 516 points to hit an intraday low of 16,546 and Sensex plunged a whopping 1,857 points to hit an intraday low of 55,375.
He added that Russia doesn’t have a goal to occupy Ukraine. Putin said the responsibility for bloodshed lied with the Ukrainian “regime.”
Putin also warned other countries that any attempt to interfere with the Russian action will lead to “consequences they have never seen.”
Back home, selling pressure was broad-based as all the 15 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty PSU Bank and Realty indexes' over 3 per cent declines. Nifty Bank, Private Bank, Oil & Gas, Metal, Information Technology, Financial Services and Auto indices also fell between 2-3 per cent.
Mid- and small-cap shares were also facing selling pressure as Nifty Midcap 100 and Nifty Smallcap 100 indices dropped over 2.5 per cent each.
All constituents in Nifty 50 basket were trading lower led by Tata Motors 5 per cent fall. Adani Ports, Tech Mahindra, Bharti Airtel, JSW Steel, State Bank of India, Tata Steel, UPL, Wipro, HCL Technologies, Shree Cements and SBI Life also fell between 3-5 per cent.
The overall market breadth was extremely bearish as 2,636 shares were declining while only 240 were shares were advancing on the BSE.
