India's key indices -- BSE Sensex and NSE Nifty50 -- fell sharply during the opening session on Monday amid skyrocketing crude oil prices, which hit $130 per barrel on Monday.
Ongoing hostilities between Russia and Ukraine, as well as the lack of fresh supplies, have pushed crude oil price to a 14-year high of $130 per barrel, while gold hit an all-time high of $2,000 per ounce on Monday.
The trend is expected to trigger an inflationary trend and ultimately a reversal in monetary policy stand. Besides, it has accelerated FIIs' selling in the Indian equity market. In addition, the Indian rupee touched a new record low of 77.02 to a USD on Monday's trade session.
Consequently, at 10 a.m., Sensex was 2.79 per cent or 1,515.98 points down at 52,817.83 points from its previous close. The Nifty traded lower by 2.83 per cent or 459.95 points down at 15,785.40 points.
As of 11:15 a.m., Sensex was hovering at 52,964.77 or 1,369.04 (2.52%) points lower from the closure on Friday session, while Nifty was at 15,888.55 or 356.80 (2.20%) down.
"On Monday, Indian markets fell for the third day in a row amid rising geopolitical tensions after Ukrainian officials announced Russian forces had taken control of the Zaporizhzhia nuclear power station," said Likhita Chepa, Senior Research Analyst, CapitalVia Global Resaerch.
"Brent Crude rose above $130 per barrel in early trade, the most since 2008, amid heightened geopolitical tensions, and markets began with a gap-down today."
