Dalal Street loses Rs 10 lakh cr, Oil crosses $100 first time since 2014

Srinagar, Feb 24: Russian military operations in Ukraine on Thursday resulted in a carnage on Mumbai’s Dalal Street, with investors losing Rs 10 lakh crore in market value.

According to Reuters, nine of every 10 stocks were bleeding in the red. A total of 2,758 of 3,057 shares were trading lower for the day, another 95 were unchanged and only 224 stocks were defying the weak trend.

The BSE market capitalisation fell to Rs 246 lakh crore from Rs 256 lakh crore in the previous session. It was down a whopping Rs 16 lakh crore since February 16 close of Rs 246 lakh crore. One out of every six stocks had hit its lower circuit limit by this time. Investors were concerned over energy prices which topped $100 a barrel level today.
Meanwhile, oil prices surged, with Brent breaching $100 a barrel for the first time since 2014 on Thursday, exacerbating concerns that a war in Europe could disrupt global energy supplies.

Brent crude hit a high of $102.48 a barrel, the loftiest since September 2014, and was at $102.06 a barrel at 0547 GMT, up $5.22, or 5.4%.

The sell-off spread to cryptocurrency markets, pushing bitcoin below $35,000 for the first time in a month.

Russia accounts for 11 per cent of global crude oil exports. ICICI Securities said that if sanctions take about 60 per cent of this off global markets — with China, Belarus, and a few other customers possibly defying the sanctions — world crude oil supply would decline by 3 mmbd, and the Brent crude price would likely shoot above $110 a barrel level.

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