Thursday, November 21, 2024

Indices snap 7-day losing streak on relief rally

Must read


Shares traded higher on Tuesday, reversing their seven-day losing streak, amid a short-term relief rally that fizzled out in the last hour of trading as geopolitical tensions between Russia and Ukraine escalated.

US President Joe Biden authorised Ukraine to target military sites in Russia using US-made long-range weapons. This also led to a hike in the US bond yields after an easing that had come in recently. This led Russian President Vladimir Putin to sign a revised nuclear doctrine declaring that a conventional attack on Russia by any nation supported by a nuclear power will be considered a joint attack on his country.

The Sensex ended at 77,578, up 239 points or 0.31 per cent, after gaining over 1,000 points during the day. The Nifty settled at 23,518, up 0.28 per cent. Indices gave up most of their gains late afternoon on fears of escalation in hostilities between Russia and Ukraine.

Broad market indices rose more than the Nifty even as the advance decline ratio improved to 1.92:1. Top Nifty gainers included Mahindra & Mahindra and Tech Mahindra, up 3.15 per cent and 1.9 per cent, respectively. Except metals, PSU banks and oil and gas, all sectoral indices ended in the green.

Mixed reaction

Government companies showcased mixed reaction to the Finance Ministry’s proposal for revising norms for dividend payments, share buybacks and stock splits to improve capital management and performance of their equities, said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services.

FPIs sold shares worth ₹3,411 crore, taking the monthly selloff to over ₹37,000 crore.

Vinod Nair, Head of Research, Geojit Financial Services said a strong bounce back due to bottom fishing was short-lived given the prevalent caution in the market. “Profit booking was seen ahead of the upcoming Maharashtra State election. The recent correction in valuation suggests a potential pause in further price erosion. However, the recovery will depend on an uptick in earnings which is likely to rebound due to the likely spurt in Central and State expenditure in H2,” he said.

Asian markets up

Asian markets rose Tuesday after a broadly positive day on Wall Street, led by Taiwan Weighted index which rose 1.3 per cent. European indices were trading in the red after the development on the Ukraine-Russia front on Tuesday.

“The market seems volatile, and it is advised to avoid aggressive directional trade in the key indices. Simultaneously, the technical setup portrays a bearish view, necessitating restraint from being influenced by transient pullbacks until there is evidence of sustained movement in our domestic markets. In the meantime, it is prudent to stay abreast with global developments,” said Osho Krishnan, Sr. Analyst, Technical & Derivatives, Angel One.

Indian markets will remain closed on November 20 on account of Maharashtra and Jharkhand Assembly elections.







Source link

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article