Sensex, Nifty tumble tracking global peers; geopolitical tensions weigh

Indian benchmark stock indices Sensex and Nifty fell on Wednesday tracking global peers as participants fretted over Russia's escalation of the conflict in Ukraine.

The 30-share BSE Sensex slipped 262 points or 0.44 percent to close at 59,456 and the NSE Nifty closed at 17,718, a drop of 98 points or 0.55 percent.

The Nifty Metal index was the worst performer among sub-indexes, plunging 2.1 percent in its worst day in a month.

Adani Enterprises, which touched a record high in the previous session, lost 5.1 percent, marking its worst session since mid-June. Shree Cement was the biggest percentage loser on the Nifty 50 with a 5.2 percent drop - its sharpest fall since late-February.

The Nifty fast-moving consumer goods index was the only bright spot, rising 1.2 percent led by a near 3 percent jump in FMCG major Britannia Industries.

Central Bank of India rose 6.6 percent, after jumping as much as 15 percent in the session, following an RBI move to take the state-owned lender off its prompt corrective action list.

"Markets across the globe were trading with considerable volatility ahead of the Fed policy announcement. A 75bps hike by FED was factored in by the markets, while reports of mobilising Russian forces in Ukraine has escalated geopolitical tension and fears of rising inflation. Any military escalation will have a significant effect on the world & domestic economy. This will have an influence on the near-term trend of the global market and implications on local market can be high as it is trading at premium prices compared to the world," said Vinod Nair, Head of Research at Geojit Financial Services.

All Asian markets fell on Wednesday as investors remained anxious about the slowing economy as they await the widely expected interest rate hike by the Federal Reserve. Russian President Vladimir Putin's call for troop mobilisation sent oil and gold prices soaring.