Informist, Monday, Feb 28 2022
By Ankika Biswas
MUMBAI – The benchmark equity indices recouped early losses and ended higher for the second straight session today because of likely continued buying by domestic institutional investors. However, volatility remained high because of the Ukraine-Russia crisis.
All eyes are now on the negotiations between Russia and Ukraine, which commenced at 1430 IST. Russia is said to be pressing for an agreement with Ukraine, while Ukraine is demanding an “immediate ceasefire” and withdrawal of Russian troops.
Early in the day, market sentiment was weighed down by Russian President Vladimir Putin’s decision to put nuclear forces on high alert in retaliation to the latest set of sanctions imposed by the Western countries.
Investors were also assessing the impact of the joint decision by the US, Europe and Canada to restrict access of key Russian banks to the interbank messaging system, SWIFT.
Russia’s currency ruble slumped to a record low against the US dollar following the new set of sanctions. This led the Russian central bank to significantly raise its key interest rate to 20% from 9.5%.
Fears that the sanctions would affect Russia’s oil and gas exports saw the Brent crude oil price shoot up 7% to over $105 per barrel.
Closer home, reports said that the Indian government is looking to strengthen the rupee-ruble trade with Russia, following the ban on Russian banks from SWIFT, in an attempt to cushion the blow from the sanctions.
Analysts believe this may boost trade relations between the two nations, with government officials reportedly planning to get Russian banks and companies to open accounts with a few state-run banks for trade settlement.
Boosted by continued buying by DIIs, the Nifty 50 ended 0.8% higher at 16793.90 points, after testing a high of 16815.90 points and a low of 16356.30 points intraday. The Sensex ended 0.7% higher at 56247.28 points, after moving between a low and high of 54833.50 points and 56324.54 points, respectively.
Among key sectors, shares of metal companies witnessed a sharp surge as the fresh sanctions on Russia led to rise in commodity prices amid fear of supply disruptions. Consequently, the Nifty Metal index ended 5% higher at 5896.85 points, after surging to 5909.15 points. Most of its constituents were up 0.5-7%.
As for the other major gainers, oil marketing companies surged in anticipation of a rise in petrol and diesel prices after completion of voting in Assembly elections in key states. Bharat Petroleum Corp, Indian Oil Corp, and Hindustan Petroleum Corp ended 2-4% higher.
The other major gainers that lifted the benchmark indices were the information technology pack and index heavyweight Reliance Industries.
In stock-specific action, Future Group companies registered strong gains on Reliance Retail’s plan to rescue the debt-laden retailer by reportedly taking over some Big Bazaar stores. While shares of the group company ended 5-16% higher, those of RIL ended over 3% higher at 2,359.55 rupees.
Coal India rose nearly 4% to a three-week high of 169.90 rupees after sources told Informist that it was in talks with Rio Tinto to set up a 300-bln-rupee aluminium manufacturing unit as part of a joint venture.
Buying interest was also seen in the broader market, as most mid- and small-cap indices on the National Stock Exchange were up 0.5-1%.
* Among Nifty 50 stocks, 33 rose, 16 fell, and 1 was unchanged
* Among Sensex stocks, 17 rose and 13 fell
* On the NSE, 1,343 stocks rose, 313 fell and 30 were unchanged
* On the BSE, 2,115 stocks rose, 1,332 fell and 145 were unchanged
* Nifty Metal: Up 4.95%; Nifty IT: Up 1.11%; Nifty Bank: Down 0.6%
BSE National Stock Exchange
Sensex: 56247.28, up 388.76 pts (0.7%) Nifty 50: 16793.90, up 135.50 pts (0.8%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 54529.91 (Feb 24) : 2022 Closing Low: 16247.95 (Feb 24)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 54383.20 (Feb 24) : 2022 Low (intraday): 16203.25 (Feb 24)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
End
Edited by Ashish Shirke
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