Sensex snaps 7-day loss, ends 1,328 pts higher, Nifty reclaims 16,650

The domestic benchmark indices staged a strong comeback on Friday as investors resorted to bargain hunting following recording selling in the previous session. The investor appetite for riskier assets also improved amid rebound in global equities and correction in crude prices. Volatility index, India VIX, cooled to 26.74, down 16.4% from 31.98 in the previous session.

After falling nearly 5% in the previous session, the 30-share BSE Sensex closed 1,328 points higher at 55,858, while the 50-share Nifty surged 410 points to settle at 16,658. Outperforming the benchmark indices, the broader markets ended with strong gain. The BSE midcap and smallcap indices closed with more than 4% gain each.

“The bounce back in the markets being seen today is a counter to the exaggerated reaction we saw yesterday led by the fears of fully blown out armed conflict between NATO and Russia. It was further compounded by the fact that yesterday was also the monthly FNO expiry. However, as it became obvious that NATO countries have no desire for an armed conflict and would rather use the path of sanctions, the risk perception has lowered marginally globally,” says Nitin Raheja, executive director and head – discretionary equities, Julius Baer.

From an India perspective, the greater risk comes from the impact of rising geopolitical tensions on crude oil and commodity prices, said Raheja. He further stated that if crude sustains over $100 it could create a negative economic impact in the form of rising inflation and deterioration in the current account deficit.

Top gainers and losers

Barring Nestle India and Hindustan Unilever Ltd, all heavyweights on the BSE Sensex pack closed higher.

Tata Steel, the country’s largest steel maker, was the best performer with a 6.54% gain, followed by IndusInd Bank, which ended 5.83% higher.

Among others, Bajaj Finance rose 5.16%, NTPC surged 4.91%, and Tech Mahindra ended 4.26% higher on the BSE.

All sectors end in green

The market witnessed broad-based buying with all sectoral indices closing in positive terrain. The metal and realty indices gained the most, while FMCG and oil and gas sectors saw the least gains.

Sectorally, the BSE metal index topped the gainers chart by rising 5.91%, led by Coal India, Jindal Steel & Power, Steel Authority of India (SAIL), APL Apollo Tubes and Vedanta.

The metal index was followed by realty space, which closed 5.47% higher. The top gainers in this sector were Macrotech Developers, Sunteck Realty, DLF, Sobha and Brigade Enterprises.

Global stocks rebound

Shares in the Asia-Pacific region and in European market traded mostly higher today after sharp sell-off in the previous session, following strong finish at Wall Street.

In the Asia-Pacific region, all major markets ended in green, led by Japan’s Nikkei 225 index, which surged 1.95%. The Singapore’s Straits Times Index rose 0.56%, Australia’s ASX 200 index climbed 0.1%, and South Korea’s KOSPI surged 1%.

The Hang Seng index in Hong Kong ended 0.6% lower.

In mainland China, the Shenzhen Component and the Shanghai Composite added 1.2% and 0.63%, respectively.

European stocks also opened higher today, following positive closing at Wall Street overnight after Western countries imposed harsh fresh sanction against Russia.

Germany’s DAX surged 1.5% in early deals, France’s CAC index climbed 1.6%, and the U.K.’s FTSE 100 index rallied 2.1%.