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Benchmark indices closed higher amid volatility on Monday.
Market opened on a flat note amid weak global sentiments as investors remained concerned regarding the worsening Russia-Ukraine crisis. After a gap down start, indice rebounded from the day’s low during closing hours to close higher, led by metals and oil & gas stocks.
The BSE Sensex closed at 56,247.28, up 388.76 points or 0.70 per cent. It recorded an intraday high of 56,324.54 and a low of 54,833.50. The Nifty 50 closed at 16,793.90, up 135.50 points or 0.81 per cent. It recorded an intraday high of 16,815.90 and a low of 16,356.30.
Breadth remains positive
The market breadth remained positive with 2,115 stocks advancing on the BSE as against 1,332 declined while 145 remained unchanged. Furthermore, 15 stocks hit the upper circuit as compared to four stocks that were locked in the lower circuit. Besides, 103 stocks touched a 52-week high level and 56 touched a 52-week low.
Vinod Nair, Head of Research at Geojit Financial Services said, “Aggravated Russia-Ukraine conflict along with fresh sanctions on Russia by global powers weighed on Western markets.”
“Despite opening on a negative tone, domestic indices staged a strong recovery lifted by metal stocks and positive Asian markets. Metal stocks rallied on hopes that curtailing Russian exports would help Indian steelmakers to capture the export market share. Domestic investors are keenly awaiting the release of the Q3 GDP data later today which is forecasted at 6.5 per cent against 8.4 per cent in Q2,” added Nair.
Hindalco, Tata Steel, Powergrid, JSW Steel and BPCL were the top gainers on the Nifty 50 while HDFC Life, Dr Reddy, Axis Bank, M&M and HDFC Bank were the top laggards.
Investors are closely watching the developments in the Russia-Ukraine crisis.
Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities said, “The current geopolitical developments are likely to be at center stage for some more time before we conclude a concrete market direction. Oil prices have already crossed $100/bbl, posing a downside risk to global economic growth.”
“March will be an eventful month marked by the FED meeting, state election result, LIC IPO. Furthermore, the direction of the oil prices, bond yields, dollar index, and development on the current geopolitical event will drive the market fundamentals. Commodities will be the biggest gainers, given the Russia-Ukraine crisis. Energy prices are likely to go up in the near term, and oil could see a major rise in the short run. As long as the Russia-Ukraine heat continues, the commodity will be a dominating theme versus the consumption theme,” said Chadawar.
Metals shine
On the sectoral front while metals, oil & gas, IT, consumer durables and FMCG gained, auto and financials dragged.
Nifty Metal closed 4.95 per cent higher while Nifty Oil & Gas was up 2.62 per cent. Nifty IT was up 1.11 per cent. Nifty FMCG and Nifty Consumer Durables were up 0.63 per cent and 1.53 per cent, respectively. Nifty Realty was up 0.61 per cent.
Meanwhile Nifty Auto was down 0.69 per cent. Nifty Bank was down 0.62 per cent. Nifty Private Bank and NIfty Financial Services were each down 0.54 per cent.
Broader indices
Broader indices closed in the green.
Nifty Midcap 50 was up 0.96 per cent while Nifty Smallcap 50 was up 1.14 per cent. The S&P BSE Midcap was up 0.83 per cent while the S&P BSE Smallcap was up 0.80 per cent.
The volatility index was up 6.84 per cent at 28.57.
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