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Geopolitical tensions surrounding Ukraine weighed heavily on global markets.

Geopolitical tensions surrounding Ukraine weighed heavily on global markets. Key Asian markets ended lower except in China that gained 0.9 percent while Nikkei and Hang Seng fell 1-1.5 percent. European markets lost between 1-2 percent.  The market snapped five-day winning streak on the first day of the week, tracking weakness in global peers as investors remained cautious over rising tensions in Ukraine. The 30-share BSE benchmark Sensex closed below the 21000-mark, down 173.47 points to 20,946.65 while the Nifty fell 55.50 points to 6,221.45 weighed down by banks, capital goods, technology and healthcare stocks. Geopolitical tensions surrounding Ukraine weighed heavily on global markets. Key Asian markets ended lower except in China that gained 0.9 percent while Nikkei and Hang Seng fell 1-1.5 percent. European markets lost between 1-2 percent. Ukraine's new PM Arseniy Yatseniuk has accused Russia of declaring war on the country. This after Russia moved troops to three bases in Crimea on Sunday. The surprising move was that Russia's central bank has raised interest rates from 5.5 percent to 7 percent, in an effort to stabilise its currency and offset inflation. Richard Gibbs, Global Head, Macquarie Securities believes risk aversion will be elevated because of weak growth in China and tensions in Crimea, a strategic peninsula going into the Black Sea and Russia’s only access to all weather port. Gibbs however says India need not worry too much as it is well supported by domestic demand. According to him, investors should use every dip to buy into markets like India. Healthcare saw huge selling pressure on the back of profit taking; BSE Healthcare Index fell 1.55 percent as pharma majors Sun Pharma and Dr Reddy’s Labs plunged 3 percent. Both stocks had rallied 5-6 percent last week. Cipla declined 2 percent. State-run power equipment maker BHEL, which had spiked 11 percent last week, dropped 3 percent today. CNBC-TV18 reports quoting government sources that Life Insurance Corporation of India (LIC) purchased government's 4.66 percent stake in the company at Rs 167.20 apiece through block deal in morning. Auto stocks lost ground post February sales numbers. Tata Motors, Bajaj Auto and Mahindra & Mahindra were down 1.5-2 percent. India’s largest private sector lender ICICI Bank was down 1.35 percent while rivals State Bank of India and Axis Bank slipped nearly 1 percent. Housing finance company HDFC was down 0.9 percent. Technology stocks like TCS, Wipro and Infosys dropped between 0.7-1.9 percent but Tech Mahindra rallied 2 percent, hitting a seven-year high of Rs 1920. However, shares of Reliance Industries, ITC, Tata Steel and Hindalco Industries bucked the trend, rising 0.4-0.5 percent. The broader markets outperformed benchmarks with the BSE Midcap index falling 0.3 percent and Smallcap closing flat. AstraZeneca Pharma was locked at 20 percent upper circuit after the board of directors said it would consider parent's delisting offer on March 5. Rail stocks saw buying interest on hopes of getting final nod on foreign direct investment (FDI). Shares of Kalindee Rail surged 10 percent, Titagarh Wagons jumped 7 percent and Texmaco Rail and Engineering was up 3 percent as Commerce and Industry Minister Anand Sharma said that cabinet note on FDI in railways was cleared. Jubilant Life Sciences and Paper Products were up 10 percent each, continuing upmove for the second consecutive day. Jubilant Life on Friday announced successful resolution to FDA warning letter for montreal facility while Paper products' foreign promoter Huhtavefa BV raised stake in the company by 3 percent to 63.78 percent though off-market transaction last week. Jaiprakash Power Ventures crashed 15.5 percent as investors are worried about valuation of the deal in which the company decided to sell two hydropower units to Abu Dhabi-based TAQA-led consortium. JP Morgan has downgraded JP Power to neutral from overweight and reduced price target to Rs 19 apiece from Rs 25 apiece, citing risk-return trade off is no longer attractive. Decliners beat advancers by a ratio of 1460 to 1192 on the Bombay Stock Exchange.

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