Sensex, Nifty Set To Tumble Amid Boiling Oil Prices

Indian shares are set to open sharply lower on Monday as the war between Russia and Ukraine showed no signs of ebbing, leading to prices of global commodities from oil to farm products shooting through the roof and adding to the already-elevated inflationary pressures.

Foreign portfolio investors (FPIs) pulled out as much as Rs 17,537 crore from the Indian markets in just three trading sessions of March due to concerns over high valuations, Fed policy tightening and the worsening Russia-Ukraine war.

Investors also remain on edge ahead of the outcome of the crucial state elections including Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur on March 10.

Asian markets were moving lower this morning and U.S. equity futures tumbled, as Russian forces stepped up their shelling of Ukrainian cities in the center, north and south of the country late Sunday in an attempt to isolate Kyiv, Kharkhiv and Chernihiv.

The escalating conflict sent investors dashing to safer assets, propelling the dollar to its highest level since the coronavirus-induced volatility of two years ago.

Oil soared above $135 a barrel after the White House said it was considering an embargo on Russian supplies.

U.S. stocks fell on Friday as a surge in commodity prices over fears of supply disruptions overshadowed positive U.S. employment data for February.

Data showed non-farm payroll employment spiked by 678,000 jobs in February after an increase of upwardly revised 481,000 jobs in January.

The jobless rate dipped to 3.8 percent in February from 4.0 percent in January but the wage growth slowed a little in the month.

The Dow dropped half a percent, the S&P 500 slid 0.8 percent and the tech-heavy Nasdaq Composite lost 1.7 percent.

European stocks nosedived on Friday to close near one-year lows after Russian forces took control of Europe’s largest nuclear plant and EU chief Ursula von der Leyen said the bloc was ready to hit Russia with more sanctions.

The pan European Stoxx 600 slumped 3.6 percent. The German DAX plunged 4.4 percent, France’s CAC 40 index plummeted 5 percent and the U.K.’s FTSE 100 sank 3.5 percent.