Sensex & Nifty crash in early morning trade after Russia launches operation in Ukraine

Russian President Vladimir Putin's announcement of a military operation in Ukraine had a detrimental impact on the Indian markets in the opening trade on Thursday. While Bombay Stock Exchange benchmark Sensex tanked 1,461 points or 2.55% to 55,770.71, Nifty slipped by 430.10 points, i.e. 2.52% to 16,633.15. Moreover, Sensex constituents such as Airtel, IndusInd Bank, Tech Mahindra and SBI suffered the most dropping by nearly 8%. Meanwhile, the Rupee plummeted 55 paise to 75.16/US Dollars in early trade. 

Russia-Ukraine crisis

The tensions between Russia and Ukraine escalated on Monday after Vladimir Putin recognized the independence of the Donetsk People’s Republic (DNR) and the Luhansk People’s Republic (LNR). Located in eastern Ukraine, these regions have been under the control of Russia-backed separatists since 2014. Moreover, Russian troops have already entered the aforesaid areas Russian troops to perform so-called "peacekeeping functions". The Russian President's decision was immediately condemned by US President Joe Biden who signed an executive order prohibiting investment in DNR and LNR. 

In an address, Ukraine President Volodymyr Zelenskyy affirmed that Russia had violated the sovereignty and territorial integrity of his country. Furthermore, he contended that recognizing the "independence" of Donetsk and Luhansk could imply Russia's unilateral withdrawal from the Minsk agreements. A few hours earlier, Putin formally declared a military operation in Ukraine's Donbass region targeted at demilitarization and denazification of the country. Moreover, he warned other countries of consequences if they tried to interfere in the operation.

Later, reports emerged of explosions in several cities of Ukraine including Kyiv, Kharkiv, Odesa and Mariupol. As per sources, the Headquarters of the Ukraine Armed Forces, as well as several important military buildings in Kyiv, have been targeted by the Iskander-M tactical ballistic missiles launched by the Russian Army. 

Responding to this, US president Joe Biden affirmed, "Prayers of the entire world are with the people of Ukraine tonight as they suffer an unprovoked and unjustified attack by Russian military forces. President Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering". 

Confirming the attacks on Ukraine, the country's Foreign Minister Dmytro Kuleba said, "Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes. This is a war of aggression. Ukraine will defend itself and will win. The world can and must stop Putin. The time to act is now". As per Russia's Ministry of Defence, precision weapons were used to neutralise the military infrastructure and Air Forces of Ukraine.