In just five days, the Sensex has climbed 3600 points. What is boosting it?
Stock Market Analysis as of 14 March 2022
Domestic benchmark indices extended their gains for the fifth consecutive session, kicking off the holiday-shortened week on a high note.
Despite the ongoing Russia-Ukraine conflict and the possibility of the Federal Reserve raising interest rates for the first time since 2018, buying in banks and IT firms drove the 30-share pack Sensex higher by 935.72 points to 56,486.02 on Monday, while its broader peer NSE Nifty rose 240.85 points or 1.45 percent to 16,871.30.
As reflected in the total market capitalization of BSE-listed firms, investor wealth increased by more than Rs 13 lakh crore in the last week, coinciding with a sharp recovery in Indian equities.
During the previous five sessions, Sensex and Nifty gained 6.9 percent (3,643.27 points) and 6.35 percent (1,008.15 points), respectively.
“As the strategy shifts from tactical sell to tactical buy, we are gaining traction. Commodity prices are reverting, and investors are piling in. FIIs are selling, and crude prices are falling, which is expected to continue based on diplomatic developments and give the domestic market an advantage. Domestic WPI has risen, but the market is ignoring it because future prices may fall,
“Vinod Nair, Geojit Financial Services, Head of Research, said
Market at a glance: —
- Paytm has dropped by 12% as a result of the RBI bars. Payments Bank is accepting new customers.
- Ruchi Soya achieves a 20% upper circuit on a 4,300 cr. FPO updates
- Jubilant Food prices have dropped by more than 12% due to the CEO’s resignation and brokerages’ downgrading of the company’s rating.
- HUL’s profit-booking ended in the red, and the company announced price increases on various products.
- Omaxe is down 3% as the IT department conducts searches against builders.
- India The VIX, a measure of future volatility, increased 0.65% to 25.51.
What’s happening globally
On Monday, global markets were mixed, with oil prices extending last week’s decline and falling more than 2% in afternoon trade.
European stocks rose alongside US futures as Russian and Ukrainian negotiators prepared for a new round of talks.
Hong Kong and Shanghai bourses closed around 5% lower, while Tokyo bourses closed marginally higher. MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 2.07%.
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