Market trades firm, broader market rallies

25 Feb 2022 , 02:40 PM

Domestic equity benchmarks were trading near the days high in mid afternoon trade. Shares surged on value buying after the key domestic barometers slumped over 6.2% in the past seven consecutive sessions. All the sectoral indices on the NSE rallied.

At 14:30 IST, the barometer index, the S&P BSE Sensex, surged 1,393.48 points or 2.56% to 55,923.39. The Nifty 50 index jumped 436.35 points or 2.69% to 16,684.30.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index surged 3.86% each.

Buyers outpaced sellers. On the BSE, 2559 shares rose and 753 shares fell. A total of 107 shares were unchanged.

Domestic equity shares slumped on Thursday after Russia announced military actions in Ukraine. Following the action, the Western Countries imposed sanctions on the Russian economy.

The market, however, bounced on Friday as the economic sanctions announced by the US and others so far have not included any exile of the Russian economy from the global Swift payment system.

Swift, or the Society for Worldwide Interbank Financial Telecommunication, was launched in 1973 to serve as a neutral platform for banks to chat about financial transfers, transactions, and trades. Banning the entire country from Swift would halt Russias ability to conduct international trade, receive foreign currency, or continue global business dealings. It would almost surely have severe spillover effects.

Further, the ongoing geopolitical tensions have led investors to believe that US Federal Reserve will tone down its plan to aggressively hike rates this year.

Buzzing Segment:

The Nifty Bank index jumped 3.49% to 36,456.40. The index slumped 5.79% in the previous session.

Punjab National Bank (up 8.44%), IDFC FIRST Bank (up 7.71%), RBL Bank (up 7.32%), IndusInd Bank (up 5.47%), AU Small Finance Bank (up 4.55%), Bandhan Bank (up 4.50%), Axis Bank (up 4.30%), ICICI Bank (up 3.70%), Kotak Mahindra Bank (up 3.17%), HDFC Bank (up 2.56%), Federal Bank (up 2.45%) and SBI (up 2.39%) advanced.

Stocks in Spotlight:

KSB added 2.36% after the company reported 23.1% rise in consolidated net profit to Rs 39.40 crore on a 20.2% increase in net sales to Rs 444.60 crore in Q4 December 2021 over Q4 December 2020. Profit before tax in Q4 December 2021 stood at Rs 53.70 crore, down by 21.1% from Rs 68.10 crore in Q4 December 2020.

Kirloskar Ferrous Industries zoomed 6.53% after the Competition Commission of India (CCI) approved the companys proposed acquisition of a majority stake in ISMT.

In November last year, Kirloskar Ferrous Industries (KFIL) said that it will acquire a majority stake in Indian Seamless Metal Tubes (ISMT) by subscribing to its equity shares through a preferential allotment and gain sole control over ISMT.

ISMT is the largest integrated specialized seamless tube manufacturer in India.

Global Stocks:

The Dow Jones index futures were down 325 points, indicating a weak opening in the US stock market.

Shares in Europe and Asia advanced on Friday, as market participants assessed the impact of Western sanctions against Russia after the Kremlin launched an invasion of Ukraine.

U.S. President Joe Biden on Thursday said Washington will seek to isolate Russia from the global economy by introducing new sanctions following Moscows invasion of Ukraine. The White House has also authorized additional troops to be stationed in Germany as NATO allies look to bolster defenses in Europe, Biden said.

The European Union also agreed to more sanctions on Russia, calling on the country to stop all military action and withdraw its forces.

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