Indian shares bounce back from Ukraine sell-off, snap 7-day losing run By Reuters

Indian shares bounce back from Ukraine sell-off, snap 7-day losing run
© Reuters. FILE PHOTO: People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, November 4, 2020. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) -Indian shares snapped a 7-day losing streak to close more than 2% higher on Friday, a day after their worst fall in over a year following Russia’s invasion of Ukraine.

The NSE Nifty 50 index ended up 2.53% at 16,658.40, and the S&P rose 2.44% to 55,858.52. Both the indexes had plunged more than 4% on Thursday.

The benchmarks still fell for a third straight week, dropping more than 3% each, with the Nifty seeing its biggest weekly decline since late November.

“The bounce back in the markets being seen today is a counter to the exaggerated reaction we saw yesterday led by the fears of fully blown out armed conflict between NATO and Russia,” said Nitin Raheja, head of discretionary equities at Julius Baer.

As it became obvious that NATO countries have no desire for an armed conflict and would instead take the sanctions route, the risk perception lowered globally, Raheja added.

Meanwhile, the Indian 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’s downward trend made the monetary policy committee retain its policy rate and stance.

State-run Coal India, which led gains on the Nifty 50, rose nearly 9%. The coal ministry said it was considering partnering with private companies to operate mines which had been shut by Coal India or where production had been discontinued.

Apollo Hospitals Enterprise was 5.7% higher after the National Stock Exchange said https:// it would be added in the Nifty 50 index from March 31, replacing Indian Oil Corp.

Nifty’s metal index and public sector bank index were among the top gainers, rising 5.7% and 4.7%, respectively.

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