Sensex hit its highest level since February 10, hoping for a truce between Russia and Ukraine

The country’s benchmark indexes rose more than 1% on Wednesday as investor sentiment rose on optimism about progress in talks between Russia and Ukraine.

The Sensex rose 740 points, or 1.3 percent, to end the day at 58,684 points, the highest since February 10, and also the index’s highest one-day gain in two weeks. Meanwhile, Nifty 50 ended the session at 17,498, up 173 points, or 1 percent.

On Wednesday, foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) were net buyers. The former bought shares worth Rs 1,216, while the latter injected Rs 1,357 crore.

Russia said on Tuesday it had scaled back its military activity around the Ukrainian capital, Kyiv and Chernihiv. Vladimir Medinsky, Russia’s chief negotiator, described the move as one of two steps toward de-escalating the 34-day-old conflict.

“The market was looking for some good news, and the de-escalation talks cheered for investors. There was also some buying due to the re-review of indices,” said UR Bhat, co-founder of Alphaniti Fintech.

However, there is considerable skepticism about Russia’s promise of de-escalation, with some describing it as a tactical retreat. Analysts said that any gains in stock markets will remain fragile if the war continues.

Brent crude prices rose on Wednesday to trade around $113.30 a barrel. And while prices have fallen recently, they are still at high levels, prompting oil marketing companies to raise fuel prices.

Crude oil prices fell on expectations of lower demand from China as Shanghai imposed a phased shutdown to contain the Covid outbreak. However, concerns about supply-side issues, with the ongoing Russo-Ukrainian war, prevented prices from falling significantly.

Aside from geopolitical tensions, markets are also grappling with rising raw material costs and central banks dismantling monetary support.

“China’s COVID situation is a major concern. China is the supplier to the world, and one should be concerned if the outbreak is not contained,” Bhatt said.

Experts said the companies’ quarterly results, which are expected to kick off next week, will give markets a sense of direction.


“Quarterly earnings remain crucial at this point. Furthermore, the number of cuts/upgrades will have to be monitored (due to higher input cost pressure), as this will drive market fundamentals. We remain positive in the long term,” said Neeraj Chadwar, Head of Division Quantitative Research, Axis Securities, The market view is supported by the emerging positive structure as increased capital spending enables banks to improve credit growth.

The breadth of the market was strong, with 2083 shares gaining and 1322 shares falling. More than two-thirds of shares in Sensex rose, with Reliance Industries being the largest contributor to the gains. Real estate stocks were the highest gainers, while its sectoral index rose by 1.5 percent on the Bahrain Stock Exchange. On the other hand, metal stocks fell, and their index fell by 2.9 percent.

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