Sensex rebounds 1,329 points amid cues from global markets; Nifty ends above 16,650 - Times of India

Sensex rebounds 1,329 points amid cues from global markets; Nifty ends above 16,650 – Times of India

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NEW DELHI: Equity indices rebounded on Friday, a day after Russia’s attack on Ukraine led markets to their biggest fall in over a year.
The 30-share BSE index jumped 1,329 points or 2.44 per cent to close at 55,859. While, the broader NSE Nifty settled 410 points or 2.53 per cent higher at 16,658.
Tata Steel was the top gainer in the sensex pack followed by IndusInd Bank Bajaj Finance, NTPC and Tech Mahindra with their shares rising as much as 6.54 per cent.
Nestle India and HUL were the only shares that finished in red.
On the NSE platform, sub-indices Nifty Metal, Realty, PSU Bank and Media gained up to 5.74 per cent.
Here’s what led to the rebound:
* Investors look past Ukraine crisis
A day after both domestic indices witnessed their biggest single-day fall in over a year, investors brushed off risks stemming from the geopolitical crisis.
“Equity markets right now are of the view that no other country would interfere in the war as such, physically. So, the (Russia-Ukraine) crisis may be over by the weekend and that is what the market is pricing in,” Neeraj Dewan, director at Quantum Securities told news agency Reuters.
Western nations hit Russia with new sanctions including freezing bank assets and cutting off state-owned enterprises, they stopped short of disconnecting it from the SWIFT international banking system or targeting its oil and gas exports, which some analysts said helped markets recover.
* Global markets rebound
Despite uncertainty about the Ukraine crisis and worries over inflation and the pandemic, an overnight turnaround on Wall Street seemed to buoy Asian and European shares.
UK’s FTSE 100 rebounded on as Western sanctions against Russia over its invasion of Ukraine were not as severe as investors had expected.
France’s CAC 40 edged up 0.6% in early trading to 6,562.96, while Germany’s DAX rose 0.2% to 14,083.92. Britain’s FTSE 100 gained 1.2% to 7,295.52.
In Asian trading, Japan’s benchmark Nikkei 225 surged 2 per cent to finish at 26,476.50. Australia’s S&P/ASX 200 lost some of its earlier gains to close 0.1 per cent higher at 6,997.80. South Korea’s Kospi jumped 1.1% to 2,676.76. Hong Kong’s Hang Seng lost 0.6 per cent to 22,767.18, while the Shanghai Composite rose 0.6 per cent to 3,451.41.
Benchmark US crude was up 59 cents at $93.40 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis for international oil prices, added $1.08 to $96.50 a barrel.
* US & allies may impose harsher sanctions
The US and allies put up a united front to punish Russia with harsher sanctions over the Ukraine conflict.
The US, EU and Japan have vowed to support Ukraine and agreed on a second tranche of economic and financial sanctions on Russia.
However, officials have held back on one key financial measure, choosing for now not to boot Russia off SWIFT, the dominant system for global financial transactions.
Earlier in the week, Tokyo suspended new issuances and distribution of Russian government bonds in Japan, to reduce financing opportunities for Russia. It also banned trade with the two Ukrainian separatist regions.
But while most nations in Asia rallied to support Ukraine, China denounced sanctions against Russia, blaming the United States and its allies for provoking Moscow.
Ukrainian President Volodymyr Zelenskyy, whose grasp on power was increasingly tenuous, appealed to global leaders for even more severe sanctions than the ones imposed by Western allies and for defense assistance.
“If you don’t help us now, if you fail to offer a powerful assistance to Ukraine, tomorrow the war will knock on your door,” said the leader, who cut diplomatic ties with Moscow, declared martial law and ordered a full military mobilization that would last 90 days.

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