Indices recover mildly; Nifty trades at 16,600; Telecom stocks decline

28 Feb 2022 , 11:39 AM

Equity benchmark indices slipped in the morning trade as oil prices jumped 5 per cent following fresh sanctions on a select Russian banking system after Ukraine’s invasion. Russian President Vladimir Putin’s decision to put his nuclear forces on a higher alert in reaction to the latest stiff measures also weighed on the sentiment.

However, the indices recovered mildly with the Nifty index moving above 16,600, down 48 points. The benchmark BSE Sensex fell 162 points or 0.27 per cent to 55,695.83.

Hindalco, Tata Steel, JSW Steel, BPCL and Power Grid are the top gainers. HDFC Life, Eicher Motors, HDFC Bank, Axis Bank, and SBI Life are the top losers.

On the sectoral front, Nifty Metal stocks soar 1.5% while Oil & Gas stocks are also higher. Nifty Banking and Financial Services, Auto, FMCG, and Consumer Durables stocks are under selling pressure.

Out of 50 stocks traded on the NSE, 10 advanced and 40 declined.

The BSE Telecom index slipped 1% at 1,661.64 in the late morning trade. Bharti Airtel, TTML, Tata Comm and Sterlite Technologies are among top contributor to the index loss.

Bharti Airtel announced that its shareholders have approved the issue of equity shares on a “preferential basis” to Google post its recent purchase in the company for $700 million. The company is also lending support to the telco’s plan to infuse a whopping Rs 1.17 lakh-crore in related-party expenses, including operating expenses through its Joint Venture with Indus Towers.

Further, the telecom company is going to buy a 4.7% stake in Indus Towers, from Vodafone. It has entered into an agreement with Euro Pacific Securities Ltd, an affiliate of Vodafone Group Plc for the acquisition of a stake in the tower infrastructure company.