Equity benchmark indices on finished with gains on Friday, ending a streak of seven days during which the markets made losses amid global tensions around the Ukraine crisis.
The 30-share BSE index gained 1,328.61 points, or 2.44%, to close at 55,858.52. The broader 50-share NSE Nifty ended at 16,658.40, rising by 410.45, or 2.53%, from the previous closing mark.
Shares of Tata Steel, IndusInd Bank, Bajaj Finance, National Thermal Power Corporation Limited and Tech Mahindra were among the top gainers in Friday’s trading.
Investors seemed relieved that the sanctions against Russia were not as severe as they had earlier expected, according to Mint. On Thursday, Sensex had dropped 2,702.15 points and Nifty 815 points after Russian President Vladimir Putin announced a “military operation” in Ukraine.
Nitin Raheja, an executive director at private banking firm Julius Baer, said the bounce back on Friday was being seen as a counter to the Thursday’s “exaggerated reaction” led by fears of a fully-blown armed conflict between The North Atlantic Treaty Organization, or NATO, and Russia, reported The Economic Times.
“However, as it became obvious that NATO countries have no desire for an armed conflict and would rather use the path of sanctions the risk perception has lowered marginally globally,” he said.
Vinod Nair, the head of research at Geojit Financial Services, said that the global market relaxed as the fresh sanctions from the US did not target Russia’s oil exports or its access to the Society for Worldwide Interbank Financial Telecommunication, or Swift, the worldwide interbank payments system.
“However, the market will continue to remain volatile tracking new developments in the Russia-Ukraine war,” he added.
Globally, all the major indices, including China’s Shanghai Composite Index, Thomson Reuters Europe Equity Index and US’ Dow Jones Industrial Average, made gains.
In the past two days, the United States, European Union, United Kingdom and Australia, among other countries, have imposed sanctions against Russia as it recognised the independence of territories controlled by Moscow-backed separatists and attacked Ukraine.
However, some countries have desisted from imposing sanctions even as they have criticised Moscow’s actions.
As of now, the United States and the European Union have also refrained from imposing especially damaging sanctions on Russia, which has led to disenchantment from Ukraine. Questions have also been raised on the efficacy of the sanctions in deterring Russia from attacking its neighbour.