Markets rebound sharply: Sensex jumps 1,736 points; Nifty ends above 17,350 - Times of India

Markets rebound sharply: Sensex jumps 1,736 points; Nifty ends above 17,350 – Times of India

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NEW DELHI: Equity indices rebounded sharply on Tuesday — a after escalating tensions between Russia and Ukraine spooked investors — with the benchmark BSE sensex rising over 1,700 points led by gains across sectors amid broad-based buying.
Both the indices have been trading in green since opening trade and surged over 3 per cent in late deals.
The 30-share BSE index jumped 1,736 points or 3.08 per cent to close at 58,142. While, the broader NSE Nifty settled 510 points or 3.03 per cent higher at 17,352.
Bajaj Finance, SBI, Bajaj Finserv, L&T and Titan were the top gainers in the sensex pack rising as much as 5.13 per cent. All 30 shares finished higher.
On the NSE platform all sub-indices finished in green with Nifty Auto, PSU Bank, Media and IT rising as much as 4.01 per cent.
Here are the top reasons for today’s market rally:
* Easing tension between Russia-Ukraine
Markets cheered reports of de-escalating tensions between Moscow and the West.
Some troops in Russia’s military districts adjacent to Ukraine are returning to bases after completing drills, Russia’s defence ministry was quoted as saying on Tuesday, a move that could de-escalate frictions between Moscow and the West.
“Market’s move could be more related to settling down of Russia-Ukraine concerns. Since markets started moving beyond a level, some short covering is also happening,” Deepak Jasani, head of retail research, HDFC Securities told news agency Reuters.
* Oil prices drop from 7-year high
Oil dropped from a 7-year high to around $94 a barrel after reports of easing Russia-Ukraine crisis.
Brent crude fell $2.35, or 2.4 per cent, to $94.13 by 0912 GMT. US West Texas Intermediate (WTI) crude dropped $2.00, or 2.1 per cent, to $93.46.
Both oil benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82. The price of Brent rose 50 per cent in 2021 as a global recovery in demand from the Covid-19 pandemic strained supply.
* Strong buying support
All throughout the day, strong buying support was witnessed across all sectors.
The Nifty auto index, banking index, IT index were the top gainers, rising 3.5 per cent, 2.9 per cent and 2.8 per cent, respectively.
Among individual stocks, Spicejet advanced 5.7 per cent after reporting quarterly profit against a year-ago loss.
Bajaj Finance surged 5.13 per cent after its market capitalisation surpassed that of HDFC.
“On the back of purchasing in frontline counters, Indian equities continued to their gains in the afternoon session, staying near the day’s high point,” Gaurav Garg, head of research at CapitalVia Global Research told news agency PTI.
* Mixed global cues
European stocks opened slightly higher on Tuesday, the dollar eased and gold was just below an 8-month high as investors remained focused on the risk of Russia invading Ukraine.
Investor risk appetite improved slightly on Monday when Russian Foreign Minister Sergei Lavrov suggested that Moscow should continue along the diplomatic path to resolve the tensions.
After stocks fell in the US and Asian sessions, there were signs of sentiment improving in early European trading.
The MSCI world equity index, which tracks shares in 50 countries, was up 0.2 per cent on the day at 0839 GMT, its first gain after three consecutive days of drops of more than 0.9 per cent.
(With inputs from agencies)



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