Mumbai, Feb 25 Market recovered from the massive sell-off in the previous session with benchmark indices closing over 2 per cent higher on Friday, the start of the new series, after seven consecutive session of losses.

Market opened on a positive note, tracking positive global cues after a sharp recovery at the US markets despite the Russian aggression against Ukraine persisting on the ground. Indices extended gains during the day amid a broad-based rally led by metals and banks.

The BSE Sensex closed at 55,858.52, up 1,328.61 points or 2.44 per cent. It recorded an intraday high of 56,183.70 and a low of 55,299.28. The Nifty 50 closed at 16,658.40, up 410.45 points or 2.53 per cent. It recorded an intraday high of 16,748.80 and a low of 16,478.30.

Breadth turns positive

The market breadth turned positive with 2,638 stocks advancing on the BSE as against 732 that declined while 94 remained unchanged. Furthermore, 32 stocks hit the upper circuit as compared to the four stocks that were locked in the lower circuit. Besides, 73 stocks touched a 52-week high level and 52 touched a 52-week low.

The volatility index softened 16.39 per cent to 26.74

Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic indices staged a firm recovery tracking positive cues from global markets and took advantage of lower valuations following the massive sell-off in the previous session. Global markets took a breather as the fresh US sanctions did not target Russia’s oil exports nor their access to the Swift global payment network. However, the market will continue to remain volatile tracking new developments in the Russia-Ukraine war.”

Coal India, Tata Motors, Tata Steel, Adani Ports and IndusInd Bank were the top gainers on the Nifty 50. Only three stocks- Britannia, Nestle India and Hindustan Unilever closed in the red.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “ Indian equity markets declined sharply in the past week. Markets have been sharply volatile and the drop in Nifty from its high’s is certainly not indicative of the wealth erosion in many retail investor portfolios. Even global equity markets witnessed sharp selling in the aftermath of Russia invading Ukraine. On the economy front, MPC minutes attributed its status quo on rates and stance to the uneven domestic economic recovery and the need to complement fiscal policy.”

“European stocks were higher on Friday morning, tracking gains in Asia as market participants assessed the impact of Western sanctions against Russia after the Kremlin launched an invasion of Ukraine,” said Chouhan.

Europe is also closely watching the fallout from the crisis.

“With earnings season behind us and given the overall sentiments, markets are expected to move in sync with global peers in the coming week. A close eye will be kept on the developments concerning the Russia – Ukraine crisis and considering the inflation overhang, market participants will also observe movements in energy prices,” said Chouhan.

All in green

All sectoral indices were closed in the green with metals, financials, realty and pharma recording higher gains.

Nifty Metal closed nearly 6 per cent higher while Nifty Realty was up over 5 per cent. Nifty PSU Bank was up nearly 5 per cent while Nifty Private Bank was up nearly 4 per cent.

Nifty Bank, Nifty Financial Services, Nifty Pharma and Nifty Healthcare Index were up over 3 per cent each. Nifty Consumer Durables was up nearly 3 per cent.

Broader indices

Broader market also rebounded sharply.

As for the broader indices, Nifty Midcap 50 was up 4.43 per cent while the Nifty Smallcap 50 was up 4.92 per cent. The S&P BSE Midcap was up 4.07 per cent while the S&P BSE Smallcap was up 4.17 per cent.

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