New Delhi, Feb 22 (IANS): India's key indices -- S&P BSE Sensex and NSE Nifty50 -- extended their losses from Monday and declined sharply in early trade on Tuesday due to continued selling by foreign institutional investors amid geo-strategic tensions between Ukraine and Russia, said analysts."

"The situation remains fluid; we don't know whether the tensions will escalate or be contained from now on. The biggest macro headwind for India is crude racing to $97. The inflationary consequence of this will force the RBI to abandon its dovish monetary stance. Globally stock markets have turned weak," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Buying opportunities may emerge in this correction. But investors need not rush-in to buy. The situation is fluid. FIIs are likely to continue selling. This will continue to depress the prices of some high quality financials. Nibbling in this segment can be considered."

At 10.04 a.m., Sensex traded at 56,786 points, down 1.6 per cent or 897 points, whereas Nifty traded 16,945 points, down 1.5 per cent or 262 points.

Among the stocks, TCS, UPL, Coal India, Tata Motors, and Bharti Airtel were the top five losers among the Nifty 50 companies during the early trade, declining 3.1 per cent, 2.9 per cent, 2.9 per cent, 2.6 per cent, and 2.4 per cent, respectively.