Analysts suggest that Russia’s attack on Ukraine and macroeconomic signals from India will dominate the Indian stock market this week. While Russia’s war in Ukraine has reached Kiev, the market mood will also be determined by the release of GDP estimates and PMI data for the manufacturing and services sectors on February 28. Along with this, auto companies will also release monthly sales figures at the beginning of the month.
what experts say
“With earnings season behind us and looking at the overall sentiments, markets are expected to be in sync with global peers in the coming week. Developments related to the Russia-Ukraine crisis will be closely monitored and given the high inflation rate.” Market participants will also observe volatility in energy prices, Shrikant Chauhan, head of equity research (retail), Kotak Securities Ltd, told the news agency. PTI,
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In the near term, experts believe that volatility will remain high. “Markets will keep a close watch on the ongoing Russia-Ukraine conflict over the weekend for any further signals. In the near term, Thursday’s low of 16200 could act as strong support. While traders remain cautious of the sharp volatility. Need to stay put, investors can use the current decline to gradually add quality blue-chip companies to their portfolios, said Siddharth Khemka, head-retail research, Motilal Oswal Financial Services Ltd.
stock market position
After seven consecutive days of fall, Indian stock markets were up on Friday, rising more than 2 per cent each, as Western sanctions set off the harshest measures on Russia following the attack on Ukraine.
Global stocks also advanced but US futures were lower as Russian troops pushed toward the Ukrainian capital.
Market benchmarks rose in London, Paris, Tokyo and Shanghai but fell in Hong Kong. Russian stocks rose 15 per cent after a fall on Thursday as the invasion of Ukraine began.
Read also: Nifty above 16,600, Sensex up 1300 points; All sectoral indices high
Back home, the Sensex ended the day up 1,328.61 points or 2.4 per cent at 55,858.52, while the Nifty climbed 410.40 points to 16,658.40.
Coal India, Tata Motors, Tata Steel, Adani Ports and IndusInd Bank were the top gainers on Nifty, while Britannia Industries, Nestle India and Hindustan Unilever Ltd were the worst hit.
All sectoral indices closed with gains in PSU Bank, Power, Metal and Realty indices with gains of 4-6 per cent. Midcap and smallcap gained 4-4 per cent.
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Russia targets airfields, fuel facilities in Ukraine
Globally, Russia’s invasion of Ukraine would dominate markets, particularly with Putin’s Russian military specifically targeting airfields and fuel facilities with energy prices. The impact of EU and US sanctions on Russia will also affect investor sentiments.
Deepak Jasani said, “While developments on the Russia-Ukraine front will continue to influence market directions, supply disruptions and a resumption of commodity inflation will hurt many economies at a time when they are beginning to recover from the Omicron threat. ” Head of Retail Research, HDFC Securities.
With inputs from PTI
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