Kamalpreet

The domestic stock market was the worst performer in Asia on Thursday and clocked its worst losing streak since March 2020, with seven straight sessions of losses

The share market tanked over four per cent and the rupee suffered its worst session in more than 10 months on Thursday, after Russia's invasion of Ukraine sent oil prices soaring and fanned inflation fears.

Heavy losses across sectors drove the blue-chip NSE Nifty 50 index 4.78 per cent lower to 16,247.95, while the S&P BSE Sensex slid 4.72 per cent or 2,702.15 points to 54,529.91. Both indexes marked their worst session since May 2020 when the pandemic had roiled markets.

WORST PERFORMER IN ASIA

The domestic stock market was the worst performer in Asia on Thursday and clocked its worst losing streak since March 2020, with seven straight sessions of losses, Reuters reported.

The rupee weakened 1.5 per cent to 75.65 against the dollar, compared with Wednesday's close of 74.555.

INTERNATIONAL OIL PRICES, INFLATION

"The looming risk of this (Ukraine) crisis is no more there, it is a reality today," said Aishvarya Dadheech, a fund manager at Ambit Asset Management, adding that a rise in commodity prices and inflation could adversely impact the country, according to a Reuters report.

"High crude prices could delay the cool-off in inflation, which was expected to go moderate by the second half of 2022," said Naveen Kulkarni, chief investment officer at Axis Securities, adding that the volatility will stay for some time.

Oil prices breached $100 a barrel for the first time since 2014, raising fears of heightened inflation and wider current account deficit in the world's third-largest importer of oil.

STOCKS IN FOCUS

The Nifty's volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty 50, saw its biggest spike since mid-March 2020.

The Nifty public sector bank index .NIFTYPSU suffered the sharpest loss among sub-indexes, plunging 8.3 per cent.

Tata Motors TAMO.NS slumped 10.3 per cent and was the biggest decliner on the Nifty 50.

Top Indian pharma firms, including Dr. Reddy's Laboratories REDY.NS and Sun Pharma SUN.NS, which have significant business exposure in Russia and European markets, fell 2.6 per cent each.