Russia in Ukraine: Volatile markets soar again; Sensex up 1,300, Nifty 400
New Delhi: With the Russian troops finally entering Ukraine on Friday and the West still reluctant to get directly involved, the world’s volatile stock markets seemed to return to normal and cut the losses as India’s Sensex soared over 1,300 points and Nifty recovered 410 points.
Indian equities clocked a resounding comeback on Dalal Street as investors rushed to bargain buying at a lower level. After a nearly 5 percent fall on Thursday, benchmark indices jumped 2.4 percent amid a broad-based buying. Volatility gauge, India VIX, cooled off 16.4 percent to 26.7 levels, the media reported.
The frontline BSE Sensex settled for a range-bound trade 1,329 points higher at 55,858. On the NSE, the 50 share index rose 410 points to end at 16,658.
In the broader markets, the MidCap and Smallcap indices on the BSE outperformed the benchmarks and closed a little over 4 percent higher each.
Overseas, Brent crude oil cooled off mildly, and hovered around USD 100 a barrel, after touching USD 105 a day before.
On Thursday, the world markets had crashed and crude prices soared after Russia’s invasion of Ukraine, as uncertainties panicked investors and businesses across the world, and Indian equities plummeted as benchmarks dropped as much as 5 percent.
However, commodities markets had surged with Brent oil extending gains up to USD 105 a barrel for the first time since 2014, as gold prices soared with investors scrambling for fresh avenues to park their wealth.
Russian President Vladimir Putin’s order to launch a “special operation” on Ukraine and “demilitarize” the country had sparked global condemnation. The US had threatened further “severe sanctions” on Moscow, which sent global markets tumbling. The US, European Union, and the UK looked set to announce a “second tranche” of stricter sanctions against Russia while Ukraine cut ties with Moscow, the media reported.
In India, the frontline S&P BSE Sensex had settled near the day’s low level at 54,530, down 2,702 points, while the Nifty50 on NSE dropped 815 points to end at 16,248. All 50 counters on the broader NSE index slipped deep in the red with major companies’ stocks crashing between 6 and 11 percent.
Overseas, European stocks plunged 3 percent as investors dumped riskier assets. The pan-European STOXX 600 index fell 2.9 percent, hitting its lowest since May 2021 while marking a correction or 10 percent decline from its January record high.
The German DAX fell 3.7 percent to March 2021 lows, bearing the biggest brunt of the sell-off on fears over Europe’s largest economy’s heavy reliance on Russian energy supplies.
In the US, Dow futures fell 655 points, or 1.98 percent, while futures tied to the S&P 500 were down 1.99 percent. Nasdaq 100 futures declined 2.65 percent, the reports added.
(VP)
