Benchmark indices plunged in trade on surging crude prices, which jumped to $95 a barrel, on rising threats of a Russian invasion of Ukraine.
Many countries have asked their fellow citizens to leave Ukraine as diplmatic solutions to the problem seem fading.
This led to global markets falling, with the Sensex diving 1,300 points, while the Nifty fell 387 points in trade. Analysts also see the huge amount of liquidity being sucked out of investors due to the LIC IPO, which may put pressure on stocks.
The Sensex was last seen trading 1394 points lower, while the Nifty dived 426 points in early trade. All of the Nifty stocks barring TCS were in the red. Heavyweights HDFC plunged almost 3% in trade, while Reliance Industries was down 2%. The Bank Nifty was down 3%, thanks to relentless selling pressure in stocks like ICICI Bank and State Bank of India.
Globally, Asian markets too were trading lower, following worries over geo-political tensions. India remains vulnerable to rising crude prices, with inflation likely to leave the RBI worried.