Indian stocks joined a global selloff as Russian forces attacked targets across Ukraine, triggering the worst security crisis in Europe since World War II.
The NSE Nifty 50 Index slumped as much as 5 per cent, the most since March 2020, before paring slightly. The S&P BSE Sensex fell 4.7 per cent. Both measures, which were the worst-performing among major stock benchmarks in Asia on Thursday, suffered their longest losing streak since March 2020 with seven days of losses.
The sharp drop coincided with the expiry of February derivatives on Thursday. The India NSE Volatility Index surged 30 per cent, the biggest jump since March 2020. The rupee fell 1.4 per cent, the most since April 2021, while yields on benchmark government bond rose two basis points to 6.76 per cent.
Russia launched a barrage of missile, artillery and air attacks early on Thursday as President Vladimir Putin vowed to “demilitarize” the country and replace its leaders. Global stocks tumbled while bonds and oil soared. The Asia stock benchmark dropped as much as 2.8 per cent to the lowest since November 2020.
Reliance Industries Ltd. contributed the most to the Sensex’s decline, falling 5 per cent, followed by a 5.5 per cent slide in HDFC Bank Ltd. All 30 stocks in Sensex fell.