February 16, 2022, 0 Comments
Markets End In The Green As The Sensex Exceeds 1,700 Points: Ukraine,Russia
On Tuesday afternoon, stocks jumped over 3% as a result of mass buying in response to rumours that some Russian military were returning to positions near Ukraine.
The NSE Nifty 50 index was up 2.9 percent at 17,330 as of 0921 GMT, while the S&P BSE Sensex was up 2.95 percent at 58,070.21. On Monday, both indexes had dropped 3%.
According to Russia’s defence ministry, some soldiers in Russia’s neighbouring military districts are returning to bases after training, which might help de-escalate tensions between Moscow and the West.
Following the decision, US stock futures rose, but safe-haven currencies such as the Japanese yen and Swiss franc fell.
“The market’s movement may be more directly linked to the settlement of Russia-Ukraine tensions.” “Short covering has happened when markets started to go beyond a level,” said Deepak Jasani, head of retail research at HDFC Securities.
The Nifty auto index, the Nifty banking index, and the Nifty information technology index all increased by more than 3.5 percent, 2.9 percent, and 2.8 percent, respectively.
Spicejet jumped 5.7 percent after reporting a quarterly profit vs a loss the previous year, while pharmaceutical Cipla fell 4.5 percent after its promoter group sold a 2.5 percent stake. Manappuram Finance has lost more than 10% of its value as a result of lower quarterly profits.
Meanwhile, BofA Securities reduced its December 2022 Nifty target to 17,000 from 19,100, citing a drop in market breadth and a rise in volatility.
According to BofA analysts, India’s corporate profitability may fundamentally surpass nominal GDP growth due to a convergence of multi-year capital investment, loan expansion, start-up cycles, and ‘growth-oriented’ fiscal and monetary policies.