Benchmark BSE Sensex recovered from early lows to close higher for the second straight session on Monday, mirroring a rebound in Asian equities, even as the Ukraine crisis continued to roil western markets.
After a weak opening, the 30-share BSE barometer plunged more than 1,025 points to the day’s low of 54,833.50, before staging a recovery to close 388.76 pts or 0.70 per cent higher at 56,247.28, marking its second session of gains.
On similar lines, the broader NSE Nifty climbed 135.50 points or 0.81 points to settle at 16,793.90.
Tata Steel emerged as the lead gainer among Sensex scrips, jumping by 6.61 per cent, followed by Power Grid, Reliance Industries, Titan, NTPC, L&T, Asian Paints and ICICI Bank.
On the other hand, Dr Reddy’s, M&M, Axis Bank, HDFC twins and Kotak Bank were among the major laggards, shedding up to 2.81 per cent.
“Aggravated Russia-Ukraine conflict along with fresh sanctions on Russia by global powers weighed on Western markets. Despite opening on a negative tone, domestic indices staged a strong recovery lifted by metal stocks and positive Asian markets.
“Metal stocks rallied on hopes that curtailing Russian exports would help Indian steelmakers to capture the export market share. Domestic investors are keenly awaiting the release of the Q3 GDP data later today…,” said Vinod Nair, Head of Research at Geojit Financial Services.
Ajit Mishra, VP – Research, Religare Broking Ltd, said markets will first react to GDP data outcome in early trade on Wednesday.
“At this point, participants are keeping a close watch on updates related to Russia and Ukraine. Any fruitful negotiation outcome will boost sentiments, however on the flip side any dissatisfaction to either country, may once again impact markets worldwide. We would remain cautious and wait for some meaningful sign of de-escalation,” he noted.
Sector-wise, BSE metal index soared 5.47 per cent, followed by energy, basic materials, oil and gas and power.
However, bankex, capital goods and finance closed lower.
Global markets were mixed after western nations ramped up sanctions on Russia, while a Ukrainian delegation arrived for talks with Moscow on the border with Belarus.
Asian markets recovered from early losses to close higher.
Japan’s Nikkei 225 gained 0.2 per cent, the Shanghai Composite index rose by 0.3 per cent while the Kospi in Seoul climbed 0.8 per cent. However, the Hang Seng in Hong Kong dropped 0.2 per cent.
Bourses in Europe were trading in the red in the afternoon session.
Oil prices firmed up on Monday, with US benchmark crude rising 4.7 per cent to USD 95.92 per barrel and Brent crude gaining 4.5 per cent to USD 98.32 per barrel.
The rupee closed flat at 75.33 against the US dollar on Monday.
Spooked by the Ukraine crisis, foreign institutional investors further offloaded shares worth Rs 4,470.70 crore in the Indian capital markets on Friday, exchange data showed. PTI MR ABM ABM ABM
