SGX Nifty indicates a 200-point fall for Nifty at open, as Russia escalates its aggression against Ukraine. According to reports, Zaporizhzhia nuclear power plant in Ukraine was on fire early on Friday after an attack by Russian troops. This triggered a panic selling across the globe as US futures tumbled over two per cent.

Besides, commodity prices such as crude and major metal rose further. Analysts fear this will put pressure on India Inc due to high raw material costs.

Crude - the spoiler

"Weakness in market is expected to continue in near term given escalating Russia-Ukraine conflict and surging crude and commodity prices," said an analyst.

SGX Nifty is currently ruling at 16,300 as against Nifty futures closing of 16,505. Among Asia-Pacific stocks, Japan is the worst affected by dropping almost 2.50 per cent. Rest of the indices across Korea, Australia and Taiwan and slipped between 1 per cent and 1.5 per cent.

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Analysts now fear that the current headwinds will not be blown away anytime soon. However, they believe support from domestic investors will help market from drastic fall even as foreign portfolio investors unrelented from their selling.

Amidst headwinds such as inflation worry, rate hike fears and continuing geopolitical tension, experts believe the much-needed recovery or strength is not going to happen anytime soon.

GDP to take a hit

The conflict in Ukraine could reduce the level of global gross domestic product by about 1 percentage point by 2023 and add 3 per cent to global inflation this year, the UK’s National Institute for Economic and Social Research estimated on Wednesday, with Europe more exposed than any other region.

According to Vinod Nair, Head Of Research at Geojit Financial Services, the subdued trend of the domestic market continued, however, the level of volatility is reducing.

“Large caps were more muted, dragged by FIIs selling, compared to the broad market,” he said and added: “the release of strategic reserves of oil in India and abroad along with increased output from OPEC is expected to ease crude prices in the future. Additionally, the Indian market will look at the State election exit poll data while the global market on war developments, BoE, and Fed policy meeting status from next week”

‘Banks lead decline’

Ruchit Jain, Lead Research, 5paisa.com, said the banking space has been under performing and stocks within the banking and financial space have also seen short formations in the derivatives segment.

"Till the trend remains down, this sector is likely to continue its under performance. Traders should wait for a move above 16800 with broader market participation and until then one should stay light. The immediate supports for Nifty are placed around 16350 and 16200," he added.

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