The stock markets opened week on first day of trading this week starting February 21.
At 09:16 AM, the Sensex was down 228.26 points or 0.39 percent at 57604.71. The Nifty was down 77.50 points or 0.45 percent at 17,198.80. About 727 shares have advanced, 1476 shares declined, and 131 shares are unchanged.
Among early gainers on the Sensex were Dr Reddy’s Labs (+1.48 percent at Rs 4,385), NTPC (+0.87 percent at Rs 133.50), TCS (+0.28 percent at Rs 3,805.60), Power Grid Corp (+0.59 percent at Ra 196.95,) and IndusInd Bank (+0.40 percent at Rs 959.40)were among major gainers on the Nifty. UltaCements ( -1.23 percent at Rs 6830.55); Larsen and Toubro (-1.16 percent at Rs 1,862.10), Nestle (-1.14 percent at Rs 17,853.55), HDFC (-0.98 percent Rs 2417.05), and Bajaj Finserv ( -0.94 percent at Rs 15,950.40)were early losers on the Sensex.
Nifty closed down for the third consecutive session with the advance decline ratio remaining deep in the negative, suggesting limited interest in broader markets. A 22-month low volumes also suggest that traders are unsure about the direction of the markets amidst a number of triggers. Reports of further buildup of troops outside Ukraine creates further panic among markets globally, While limited fall over three days post a sharp recovery on Feb 15 suggests relative strength in the frontline indices, volumes may have to rise to generate more confidence for long traders.
Gold may remain volatile
COMEX gold hit a fresh June 2021 high near $1910/oz but retreated to trade little changed near $1899/oz as market players continued to react to development relating to Russia. Risk sentiment stabilized somewhat as US and Russia agreed to hold talks over Ukraine however tensions prevail as US has maintained that Russian attack may happen soon. Amid other factors, mixed comments from Fed officials has also kept gold prices choppy, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities. Gold may remain volatile as market players react to development relating to Russia however general bias may be on the upside as tensions are unlikely to ease soon
Iran nuke talk with US, Russia concerns to keep crude prices up
NYMEX crude gained over 1 percent earlier in the session but shed all the gains to trade lower near $89.5/bbl. Crude rose earlier in the day on fear of imminent attack by Russia but eased back amid reports of possible US-Russia talks, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities. Amid other factors crude is pressurized by progress in Iran’s nuclear talks and rise in US natural gas rig count to April 2020 highs. Crude has rallied sharply on supply concerns and may remain supported by Russia concerns however possibility of higher output from Iran may keep prices pressurized.
Asian stocks up
Asian share markets pared sharp early losses on Monday as a glimmer of hope emerged after an announcement that President Joe Biden and Russia’s Vladimir Putin have agreed in principle to a summit to ease tensions over Ukraine. China on Monday held steady on a benchmark lending rate, with the one-year loan prime rate (LPR) kept unchanged at 3.7 percent.
US stocks close lower
US stocks closed lower Friday, with all three major benchmarks booking a second week of losses, as investors monitored developments between Russia and Ukraine amid fears of a war breaking out.
Concerns about conflict have intensified after US and NATO officials said evidence on the ground showed Russia had increased troop levels near Ukraine’s borders despite Moscow announcing earlier in the week that some units were pulling back, while Biden has said the probability of an attack in coming days remains high.
For the week, the S&P 500 fell 1.6 percent, the Dow lost 1.9 percent and the Nasdaq declined 1.8 percent. US markets will be closed on Monday in observance of Presidents Day.
Treasury yields fall
The yield on the 10-year Treasury note fell 4.2 basis points 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 percent to settle at $91.07 a barrel. The front-month March contract posted a 2.2 percent weekly loss. Gold futures for April delivery slipped 0.1% to settle at $1,899.80 an ounce. For the week, gold rose 3.1 percent for its biggest weekly rise since May 2021.
Online food delivery group Meituan led a rout of Chinese technology company shares on Friday, as authorities announced a series of regulatory moves to boost growth while keeping financial risks under control.
Three stocks in F&O ban
Escorts, Indiabulls Housing Finance, and Punjab National Bank – are under the F&O ban today (February 21).
