Indian shares rose about 3% on Friday, a day after Russia’s attack on Ukraine pushed them to their biggest fall in over a year. As investors brushed off broader risks stemming from the geopolitical crisis.
The blue-chip NSE Nifty 50 index gained 3.01% to 16,736.30 by 0527 GMT, with most of its major sub-indexes trading higher. The S&P BSE Sensex was up 2.98% at 56,163.54.
Both the indexes, however, were set to post their third straight weekly loss.
“Equity markets right now are of the view that no other country would interfere in the war as such, physically. The (Russia-Ukraine) crisis may be over by the weekend and that is what the market is pricing in,” said Neeraj Dewan, director at Quantum Securities.
Meanwhile, the Indian shares central bank’s minutes from its February meeting showed that some loss of momentum in India’s economic growth due to a third COVID-19 wave. And inflation on a downward trend made the monetary policy committee retain its policy rate and stance.
Indian shares rose about 3% on Friday
Apollo Hospitals Enterprise rose as much as 7.5% after the NSE said it would be add in the Nifty 50 index from March 31. Among individual shares and sectors, the Nifty public sector banking index and the Nifty Realty index were the top gainers, rising 5.8% and 5.2%, respectively.
Reacting to the development, benchmarks gave up all crucial support levels and Nifty opened near 17,500 and the Sensex tanked by more than 1800 points in the opening. It only got worst as the indices slipped further and corrected by more than 3 per cent as Nifty gave up 17,500, while the Sensex dropped over 2000 points amid all stocks turning negative on both the indices. Meanwhile, this war is likely to take a toll on stock markets across the world, including India, but it will have more impact on certain companies which have exposure to Russia and Europe the most. Stocks of all these Indian companies will have direct bearings.
Broader Asian markets tracked overnight gains in U.S. stocks, in a market reversal after President Joe Biden unveiled harsh new sanctions against Russia.