Russia-Ukraine Crisis: Indian shares fall amid a fresh escalation in tensions

News Desk: The BSE benchmark Sensex fell more than 2 per cent on Tuesday morning as investors dumped equities amid a fresh escalation in Russia-Ukraine tensions, echoing the sentiment in the global equity markets.

The share slide came a day after Russian President Vladimir Putin worsened the conflict by formally recognising two separatist republics in eastern Ukraine and revealing plans to send forces there. The United States and its European allies are now expected to impose harsh sanctions against Russia.

“Markets are currently driven by global factors of which the current Russia-Ukraine crisis is dominating not only domestic markets but global markets as well” said Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers.

The Sensex was down 1.4 per cent, or 815 points, at 56,868.69 in mid-day trading on Tuesday. It opened about 2.2 per cent, or 1,245 points, lower at 56,438.64. All the 30 constituents of the index were trading with significant losses.

“Short-term fund flows are seen flighting back to safe havens due to heightened uncertainty in the near term. However, long-term investors should hold steady in the current market scenario and avoid any knee jerk reaction before some clarity emerges” Solanki said.