Amid global turmoil in the view of Russia-Ukraine war, metal and oil & gas powered the domestic equity market to close higher for the second consecutive day despite opening more than 1 per cent lower on Monday as Nifty held on to crucial support of 16,600.
Amid global turmoil in the view of Russia-Ukraine war, metal and oil & gas powered the domestic equity market to close higher for the second consecutive day despite opening more than 1 per cent lower on Monday as Nifty held on to crucial support of 16,600. Nifty Metal index surged as much as 4.95%, followed by oil & gas which gained 2.6%, while consumer durables surged 1.5% and Nifty IT over 1%.
Hindalco, JSW Steel and Tata Steel led the metal index as the stocks gained up to more than 7 per cent. Similarly, BPCL, Power Grid, Reliance Industries were lead oi & gas stocks.
Metal stocks rallied on hopes that curtailing Russian exports would help Indian steelmakers to capture the export market share,” said Vinod Nair, Head of Research at Geojit Financial Services.
Banknifty witnessed a negative move, closing at 36205.30 levels with 0.6% losses as mid cap index gained nearly 1 per cent and small cap closed higher by over 0.50%.
Oil price continue to rise
Meanwhile, Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports, said a Reuters report.
Brent crude rose $4.16, or 4.3%, to $102.09, at 0915 after hitting a high of $105.07 a barrel in early trade.
“The sanctions on Russian financial institutions, such as the exclusion from the international payment system, likely complicate and slow trade. There is already evidence reported that buyers in parts shun Russian oil partly because of the uncertainties related to payment and insurance of such cargoes. Slower flows of Russian oil mean more pressure on supplies from other sources,” said Norbert Rücker, Head Economics and Next Generation Research, Julius Baer.
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Rücker said all eyes will be on the petro-nations and to what extent are they willing to ease supply concerns and tame prices by ending their production curbs. “The near-term outlook remains highly clouded and uncertain,” he added.
The rupee too slipped by 2 paise to 75.35 (provisional) against the US dollar on Monday due to rising crude oil prices amid deepening tensions between Russia and Ukraine.
