Sensex Plunges 1400 Points As Crude Prices Skyrocket, Russia-Ukraine Tensions Mount

Benchmark indices plunged in trade by a whopping 1400 points as Brent Crude prices surged to $130 a barrel, something the markets have not seen since July 2008. Fears mounted of a ban on Russian oil, which pushed crude higher, raising worries of inflation and slowing growth around the world.

"We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets," US Secretary of State Antony Blinken was reported to have told CNN.

Asian markets dived as worries mounted that there could be a ban on Russian oil and gas. The Japanese Nikkei and the Hong Kong's Hang Sang were both down 3% in trade.

The Sensex was trading lower by a whopping 1400 points, below the 53,000 points mark, while the Nifty dived 392 points in trade. Leading the set of losers in trade were some of the banking stocks. Biggest Nifty losers in trade were Bajaj Finance, ICICI Bank, Maruti and Eicher Motors. Among the few stocks that gained included metal names like Hindalco, Coal India and Tata Steel.

Analysts believe that the Indian markets would continue to remain weak, should crude prices rally. India is vulnerable to a rise in petrol and diesel prices, though elevated prices for longer could have severe impact on inflation, pushing the RBI to raise interest rates.

Meanwhile, gold prices too jumped by more than 1.5% as investors took shelter in gold.