Sensex down more than 200 points, Nifty below 17,200

Stock markets opened the week on the first day of trading this week from February 21.

As of 9:16 a.m., the Sensex was down 228.26 points or 0.39% at 57,604.71. The Nifty fell 77.50 points or 0.45% to 17,198.80. About 727 stocks were up, 1476 stocks were down and 131 stocks were unchanged.

Early Sensex gainers included Dr Reddy’s Labs (+1.48% to Rs 4,385), NTPC (+0.87% to Rs 133.50), TCS (+0.28% to Rs 3,805.60) , Power Grid Corp (+0.59% to Ra 196.95, ) and IndusInd Bank (+0.40% to Rs 959.40) were among the top gainers on the Nifty. UltaCements (-1.23% to Rs 6,830.55); Larsen and Toubro (-1.16% to Rs 1,862.10), Nestlé (-1.14% to Rs 17,853.55), HDFC (-0.98% to Rs 2,417.05) and Bajaj Finserv (- 0.94% to Rs 15,950.40) were the early losers on the Sensex.

Nifty closed for the third session in a row, with the advanced rate of decline remaining deeply negative, suggesting limited interest in the broader markets. Low 22-month volume also suggests traders are unsure of the direction of the markets amid a number of triggers. Reports of a new troop buildup outside Ukraine are creating further panic in global markets. While a limited three-day drop after a strong rally on Feb. 15 suggests relative strength in frontline indices, volumes may need to rise to generate more confidence for long traders.

Gold could remain volatile

COMEX gold hit a new high in June 2021 near $1910/oz but pulled back to trade at around $1899/oz as market participants continued to react to the development related to Russia. Risk sentiment has stabilized somewhat as the US and Russia have agreed to hold talks on Ukraine, but tensions prevail as the US has argued a Russian attack could come soon . Among other factors, mixed comments from Fed officials also kept gold prices choppy, said Ravindra Rao, CMT, EPAT, vice president of commodities research at Kotak Securities. Gold could remain volatile as market participants react to developments regarding Russia, but the overall bias could be to the upside as tensions are unlikely to ease soon

Iran discusses nuclear with the United States and Russia fears to keep crude prices up

NYMEX crude gained more than 1% earlier in the session, but shed all gains to trade near $89.5/barrel. Crude rose earlier in the day on fears of an imminent attack from Russia, but retreated amid reports of possible U.S.-Russian talks, said Ravindra Rao, CMT, EPAT, vice president of the commodities research at Kotak Securities. Among other factors, crude is under pressure from the progress of Iranian nuclear talks and the increase in the number of natural gas platforms in the United States until the April 2020 highs. Crude s has rallied strongly on supply issues and could remain supported by Russian concerns, but the possibility of higher production from Iran could keep prices under pressure.

Asian stocks on the rise

Asian stock markets pared early losses on Monday as a ray of hope emerged after news that President Joe Biden and Russia’s Vladimir Putin had agreed in principle to a summit to ease tensions over Ukraine . China held steady on a benchmark lending rate on Monday, with the one-year loan prime rate (LPR) unchanged at 3.7%.

US stocks close lower

U.S. stocks closed lower on Friday, with all three major benchmarks posting a second week of losses, as investors watched developments between Russia and Ukraine amid war fears.

Concerns over the conflict intensified after US and NATO officials said evidence on the ground showed Russia had increased troop levels near Ukraine’s borders despite Moscow announcing more earlier in the week that some units were withdrawing, while Biden said the likelihood of an attack in the coming days. remains high.

For the week, the S&P 500 fell 1.6%, the Dow Jones lost 1.9% and the Nasdaq fell 1.8%. US markets will be closed Monday for Presidents Day.

Treasury yields fall

The yield on the 10-year Treasury fell 4.2 basis points on Friday to 1.93%. For the week, the yield fell 2.1 basis points. Oil futures fell, with West Texas Intermediate crude for March delivery slipping nearly 0.8% to settle at $91.07 a barrel. The contract for the first month of March posted a weekly loss of 2.2%. Gold futures for April delivery slid 0.1% to $1,899.80 an ounce. For the week, gold rose 3.1% for its biggest weekly gain since May 2021.

Online food delivery group Meituan led a rout of Chinese tech company stocks on Friday as authorities announced a series of regulatory measures to spur growth while containing financial risks.

Three stocks in F&O ban

Escorts Indiabulls Housing Finance and Punjab National Bank – are under F&O ban today (21 Feb).

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Posted: Monday February 21st 2022, 09:22 IST