Shares end with decent gains; metal stocks outperform

28 Feb 2022 , 03:37 PM

The domestic equity benchmarks ended with decent gains after a volatile session on Monday. The Nifty closed just below the 16,800 mark. Banks and financials witnessed significant selling while metals, oil & gas and IT stocks were in demand.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 388.76 points or 0.70% to 56,247.28. The Nifty 50 index added 135.50 points or 0.81% to 16,793.90.

The NSEs India VIX, a gauge of markets expectation of volatility over the near term, surged 6.84% to 28.57.

The continued escalation of the Russia Ukraine conflict and its consequent global economic fallout continued to weigh on the investors sentiment.

In the broader market, the S&P BSE Mid-Cap index gained 0.83% while the S&P BSE Small-Cap index rose 0.80%.

The market breadth was strong. On the BSE, 2125 shares rose and 1314 shares fell. A total of 153 shares were unchanged.

Power Grid Corporation Of India (up 5.58%), BPCL (up 3.91%), Titan Company (up 3.55%), Coal India (up 3.52%) and Reliance Industries (up 3.11%) were top Nifty gainers.

HDFC Life Insurance Company (down 2.95%), Dr. Reddys Laboratories (down 2.67%), Axis Bank (down 2.16%), Mahindra & Mahindra (down 2.04%) and HDFC Bank (down 1.87%) were major Nifty losers.

In the global market, the Dow Jones index futures were down 476 points, indicating a weak opening in the US stocks today.

European shares fell across the board as more sanctions have been imposed on Russia for its invasion of Ukraine, with the U.S., Europe and Canada agreeing Saturday to remove key Russian banks from the interbank messaging system, SWIFT. The U.K. and EU have also closed their airspace to Russian aircraft.

Asian stocks, however, settled higher as investors continued to monitor the Russia-Ukraine crisis and related sanctions and their fallout.

Russia-Ukraine Conflict:

Russia continued its advance into Ukraine over the weekend, with reports of fighting on the streets and forces encircling Kyiv. President Vladimir Putin on Sunday put his countrys deterrence forces, which reportedly include nuclear capabilities, on high alert in response to international backlash to Russias invasion. Western nations agreed to unleash new sanctions to further isolate Russias economy and financial system after initial penalties failed to persuade President Vladimir Putin to withdraw his forces from Ukraine.

In yet another step that is expected to escalate tensions between the West and Kremlin, President Vladimir Putin has reportedly ordered his defence chiefs to put Russias nuclear deterrence forces on high alert due to unfriendly steps by the United States (US) and its allies. This comes after Ukrainian President Volodymyr Zelenskyy reportedly agreed to hold talks with the Russians on the Belarus border. Meanwhile, the United Nations Security Council (UNSC) on early Monday morning reportedly held another meeting over Ukraine and warned Russia of more economic sanctions, urging President Putin to maintain peace. Russias central bank announced Monday it was raising its key interest rate to 20% from 9.5% as the West pummelled the country with sanctions. The move is a desperate attempt to shore up the plummeting ruble and prevent the run of banks.

The move follows a Western decision Sunday to freeze Russias hard currency reserves, an unprecedented move that could have devastating consequences for the countrys financial stability.

Economy:

Government has permitted up to 20% Foreign Direct Investment (FDI) under automatic route in Life Insurance Corporation of India (LIC) with an aim to facilitate disinvestment of the countrys largest insurer.

Department for Promotion of Industry and Internal Trade (DPIIT) had mooted the proposal to allow FDI in LIC, after taking views from the Ministry of Finance. The much-awaited initial public offering, IPO of LIC is expected to hit the market in March and LICs employees and policyholders would get a discount over the floor price.

Buzzing Index:

The Nifty Metal index added 4.97% to 5,897.80, extending its winning run to second consecutive trading session. The metal index rallied 10.99% in two days.

Tata Steel (up 6.47%), Jindal Steel & Power (up 6.02%), Steel Authority of India (up 5.02%) and JSW Steel (up 4.78%) were the top gainers.

Among the other gainers were Vedanta (up 4.55%), Coal India (up 3.64%), Hindustan Copper (up 3.30%) and National Aluminum Co. (up 3.07%).

Hindalco Industries jumped 7.26% to Rs 572.65. The company has entered into a share purchase agreement (SPA) with Terrabel Empreedimentos, a Brazilian firm to divest entire equity shareholding in Hindalco Do Brazil Industria Comercia de Alumina LTDA (HDB) – wholly owned step down subsidiary of Hindalco Industries.

Stocks in Spotlight:

Bharti Airtel shed 0.56% to Rs 684.60. The telecom major on Friday said it has entered into an agreement with Vodafone Group Plc. to buy 4.7% equity in Indus Towers. The financial details of the deal have not been disclosed.

IRCON International rose 0.87% to Rs 40.45. The company has been appointed as a project implementation agency for a road project in Myanmar by the Ministry of External Affairs (MEA), Government of India.

Rain Industries slumped 7.49% to Rs 184.75. The company posted a consolidated net loss of Rs 97 crore in Q4 December 2021 as compared to a net profit of Rs 307 crore registered in Q4 December 2020. Net sales jumped 52.5% to Rs 4,026 crore in Q4 December 2021 from Rs 2,640 crore posted in Q4 December 2020.

Fortis Healthcare added 1.93% to Rs 245.95. CRISIL Ratings has upgraded its ratings on the bank facilities of the company to CRISIL AA-/CRISIL A1+ from CRISIL A+/CRISIL A1.

SJVN gained 2.13% to Rs 28.75. The company announced that the Ministry of New and Renewable Energy, Government of India has granted in-principle approval for development of 400MW solar park at Kinnaur district in Himachal Pradesh.

Vipul Organics advanced 3.99% to Rs 203.25. The companys board recommended bonus issue of shares in the ratio of 1:4. The company proposes to issue 1 new fully paid-up equity share for every 4 fully paid-up equity shares held. The record date for the bonus issue is set on 9 April 2022.

Vedavaag Systems rose 2.21% to Rs 64.75. The company said it has entered into an agreement with Angel One to act as corporate DRA to facilitate Demat account opening services and equity and mutual fund investment services.

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