The key benchmark indices started on a muted note as per trends indicated by the SGX Nifty futures as the markets took cues from global developments on the Russia-Ukraine war and its impact on the global economy.
At 09:16 IST, the Sensex was down 732.90 points or 1.31 per cent at 55125.62, and the Nifty was down 211 points or 1.27 per cent at 16447.40. About 626 shares have advanced, 1462 shares declined, and 142 shares are unchanged.
Bharti Airtel, Tata Motors, HDFC Life, HDFC Bank and Dr Reddy’s Labs were among major lower on the Nifty, while losers were Hindalco Industries, Tata Steel, JSW Steel and Power Grid Corp.
In the broader markets, the BSE MidCap and SmallCap indices were also in the negative territory, down 1 per cent each. Among sectors, the BSE Auto, Telecom, Bankex, and Realty indices slipped 2 per cent each, while IT and Pharm were down over a per cent each. BSE Metals was the outperformer and was flat in a weak market.
Individually, shares of Biocon were down over 3 per cent each after the company said its arm Biocon Biologics will acquire Viatris Inc’s biosimilar assets for a stock and cash deal of $3.3 billion.
Mohit Nigam, head – PMS, Hem Securities, said: “Benchmark Indices are expected to open on a flattish note as suggested by trends on SGX Nifty. WTI Crude rose more than 5 per cent on the Russia-Ukraine crisis as Western nations imposed fresh sanctions on Moscow. We believe investors should trade with caution in the next few trading sessions as the volatility is expected to persist for some time. One can use these dips to open and make fresh positions in quality stocks for the long term.”
“On the technical front, Immediate support and resistance in Nifty 50 are 16200 and 17000 respectively. Bank Nifty immediate support and resistance are 36000 and 37000 respectively,” Nigam added.
Global Cues
Moscow exchange delays start of trading, shuts FX repo market. Meanwhile, the ruble was indicated 28 per cent lower versus the dollar in offshore trading on Monday after Western nations stepped up sanctions against Russia following its invasion of Ukraine.
Hong Kong stocks started Monday slightly higher following a strong lead from Wall Street, though traders remain on edge over the Russia-Ukraine crisis with Western powers imposing fresh sanctions on Moscow. The Hang Seng Index rose 0.22 per cent or 50.99 points, to 22,818.17. The Shanghai Composite Index was marginally lower, dipping 1.09 points to 3,450.32, while the Shenzhen Composite Index on China’s second exchange was flat, inching up 0.16 points to 2,310.22.
Tokyo stocks opened lower on Monday with investors closely watching the Ukraine crisis. The benchmark Nikkei 225 index was down 0.54 per cent or 143.23 points at 26,333.27 in early trade, while the broader Topix index was down 0.16 percent or 2.95 points at 1,873.29. The Japanese market may see “drastic movement in prices, as uncertainty remains” over tensions in eastern Europe, even after US shares rallied on hopes for ceasefire negotiations between Russia and Ukraine.
Wall Street capped a turbulent week of trading on Friday with a broad rally for stocks as relief flowed through the market, even as deadly attacks raged in Ukraine. Oil fell and investors turned away from gold and other traditional havens they favor when fear is high. The S&P 500 rose 95.95 points to 4,384.65. The Dow Jones Industrial Average rose 834.92 points, or 2.5 per cent, to 34,058.75. The Nasdaq composite gained 221.04 points, or 1.6 per cent, to 13,694.62.
Meanwhile, West Texas Intermediate crude surged more than five percent in early trade on Monday as traders grow increasingly worried about an energy crisis after Western nations imposed fresh sanctions on Moscow over its invasion of Ukraine. The contract rose 5.07 per cent to $96.23, while Brent was up 4.30 per cent at $102.14.
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