Share/Stock Market Highlights: The frontline equity indices on BSE and National Stock Exchange (NSE) fell for the fifth successive session, declining over 0.6 per cent on Tuesday tracking the weakness in the Asian markets. Investors dumped equities across the board on concerns that a fresh escalation in Russia-Ukraine tensions could flare up oil prices and push inflation higher.
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The S&P BSE Sensex fell 382.91 points (0.66 per cent) to settle at 57,300.68 while the Nifty 50 slipped 114.45 points (0.67 per cent) to end at 17,092.20. Both the indices had opened with steep losses earlier in the day slipping over 2 per cent in the early trade with the BSE benchmark hiiting a low of 56,394.85 and the broader Nifty touching 16,843.80. They traded in the negative territory throughout the session however the gap was narrowed towards the last hour of trade.
On the Sensex pack, Tata Steel and Tata Consultancy Services (TCS) were the top losers of the day falling over 3.5 per cent each. They were followed by State Bank of India (SBI), Dr. Reddy’s Laboratories, IndusInd Bank and ITC. On the other hand, Bajaj Finserv, Mahindra & Mahindra (M&M), Kotak Mahindra Bank, Housing Development Finance Corporation (HDFC), Sun Pharmaceutical Industries and Infosys ended in the green.
(with inputs from agencies)
The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended lower for the fourth consecutive session on Monday amid volatility due to the ongoing situation between Ukraine-Russia.
The S&P BSE Sensex fell 149.38 points (0.26 per cent) to settle at 57,683.59 while the Nifty 50 slipped 69.65 points (0.40 per cent) to end at 17,206.65.
"The trend is your friend and the street keeps reminding investors and traders just how tough it is to focus on the famous quote of Peter Lynch when you have a confluence of factors swaying you away from your investee companies. Just when the global economy is beginning to recover and normalise from the impact of the pandemic, Russia has recognised the independence of separatist regions in Ukraine thereby inviting the possibility of severe sanctions being imposed by the US and EU. Today's trade saw selling pressure across several pharmaceutical and auto Ancillary companies with exposure to the EU. Despite a recovery in afternoon trade, almost all sectoral indices ended in the red with India VIX soaring over 20% today amidst geopolitical tensions and rising oil prices"
"Escalation in Russia-Ukraine issue and a sharp surge in oil prices forced global markets to plunge sharply. Indian equities opened with heavy losses tracking overnight fall in the global market and its adverse spill over to commodity prices. However, the domestic market managed to trim down its losses during the late session. Continued offload by FIIs has increased volatility while DIIs are adding position"
The S&P BSE Sensex ended at 57,300.68, down 382.91 points or 0.66 per cent, while the Nifty 50 settled at 17,092.20, down 114.45 points or 0.67 per cent.
Oil hit its highest since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices to near $100 a barrel.
The United States and its European allies are poised to announce new sanctions against Russia after President Vladimir Putin formally recognised the two regions in eastern Ukraine, escalating a security crisis on the continent. Click here to read
Prospective investors in Life Insurance Corp of India’s (LIC) $8 billion IPO are seeking assurances from company management that it will not sacrifice their interests to meet the goals set out by the government, its controlling shareholder, sources said.
In virtual roadshows for India’s biggest ever public listing, LIC management and the IPO bankers have been peppered with questions about the insurer’s past investments and their quality, four people with knowledge of the matter said. Click here to read
Brent crude prices hit $96.7 per barrel on Tuesday, the highest mark since September 2014, following Russian President Vladimir Putin’s deployment of troops to separatist areas Donetsk and Luhansk in Ukraine. While the West has termed it a blatant violation of international law, the rising global tensions and threat of invasion in Ukraine have caused oil prices to surge and the stock markets to crash.
While oil prices have surged nearly 40 per cent since December 1, 2021, when it was trading at $69.5, the benchmark Sensex at the BSE fell by over 1,250 points in the early trading hours on Tuesday and hit a day’s low of 56,394. The rupee also fell 33 paisa or 0.44 per cent to hit 74.84 to USD. Click here to read
"The market is witnessing a sharp cut in early trade of Tuesday's trading session on the back of intense geopolitical tension. We are in monthly F&O expiry week therefore we could see a surge in volatility whereas March is going to be a very volatile month due to lots of events like geopolitical uncertainty, results of state elections, US Fed meeting, etc. The overall trend is bullish but we may have high volatility over the next month therefore short-term traders should remain light while long-term investors should look at this correction as a buying opportunity. We are very bullish on capital goods, infrastructure, real estate, banking, consumer goods, and auto ancillaries space therefore we advise investors to look for buying opportunities in these areas.
Technically, Nifty is trying to respect its 200-DMA which is currently placed around 16850 while if Nifty starts to trade below 200-DMA then correction may see further extension towards 16000/15500 levels. On the upside, 17300/17500 are important resistance levels; above this, we can expect positive momentum in the market."
Markets regulator SEBI has approved the initial public offering of three companies – API Holdings, parent company of online pharmacy retailer PharmEasy, Adar Poonawalla-backed Wellness Forever Medicare and metal recycling firm CMR Green Technologies.
As per the information on the processing status of issues on SEBi’s website, the three companies have been issued observation letters by the market regulator last week on February 16-17, 2022. These companies had filed their preliminary IPO papers with SEBI between September and November last year. Click here to read
"Ukraine and Russia have been locked in a tense border stand-off for weeks. This crisis has added to the market concerns on high inflation and central banks' withdrawal of the easy monetary policy. Another factor that is driving the market now is the possibility of an interest rate hike and tighter fiscal policy in near future . All the volatility inducing factors are very much present and will continuously effect the market in near term. Investors may remain cautious as Nifty may touch the levels of 16800-16500 in next sessions. We may see some lower level buying at those levels. Banking, IT, Pharma and Power sectors looks attractive for medium to long term gains."
The rupee declined 24 paise to 74.79 against the US dollar in opening trade on Tuesday, amid weak risk appetite as tensions escalated in the eastern Europe.
Forex traders said sustained foreign fund outflows, a lacklustre trend in domestic equities and elevated crude oil prices weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 74.71 against the US dollar, then slipped further to 74.79, registering a decline of 24 paise from the last close.
(PTI)
"Escalations in Ukraine tensions with Russia recognising two pro-Russian rebel regions have aggravated the crisis. The economic consequences are already visible in higher crude and gold prices. 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. 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"
Global stocks tumbled while safe-havens rallied and oil surged on Tuesday as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine.
MSCI's broadest index of Asia Pacific shares outside Japan skidded 1.44%, dragged down by markets in Hong Kong and mainland China. Japan's Nikkei shed 2%.
S&P 500 futures fell 1.5%, Nasdaq futures lost 2.2%, and the Russian rouble briefly touched an 18-month low in early Asia trade on Tuesday, after Russia's MOEX equity index had fallen 10.5% the day before.
(Reuters)
Sensex crashes 956 points to trade at 56,727 in opening deals; Nifty tumbles 330 points to 16,876 as Ukraine crisis worsens.
(PTI)