Stock Market Update: Nifty, Sensex back in green; IT, oil & gas stocks shine

The Indian market made a sharp bounce back to trade in the green as benchmarks rose over 0.25% in the afternoon trade. The headline indices were seen trading near their day's high as markets recovered after falling nearly 0.50% 

The domestic equity market declined around 0.5% in the afternoon trade around 12.45 PM amid rising oil prices and uncertainty surrounding Russia-Ukraine situation.     

The broader Nifty 50 dropped 0.45% to slip below 17,100 and was trading just shy of 17,000-mark around the same time. The Sensex slumped by nearly 250 points to trade near 57,000-level.     

Nifty midcap and small cap indices declined by 0.50% and 0.10% respectively as 12-share Nifty Bank tanked by nearly 500 points to trade above 35,500.    

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Sectorally, FMCG, consumer durables, realty and PSU Bank took the maximum beating, while Nifty IT and oil & gas surged by nearly 1.5% in an otherwise weak market.    

Likhita Chepa, Senior Research Analyst, Capitalvia Global Research Ltd, said traders became wary after Reserve Bank of India (RBI) Governor Shaktikanta Das stated that all COVID-related liquidity relief measures offered by the central bank had a sunset date and will be phased out over time. "Meanwhile, a parliamentary panel has recommended that the government prolong the time for MSME loans to be repaid under the Emergency Credit Line Guarantee Scheme (ECLGS). On the global front the market has been trading in green," she added.  

ONGC, Tech Mahindra, RIL, Power Grid, IOC, TCS, Infosys, Wipro, Bajaj Finserv were among gainers, while Nestle India, Hindustan Unilever, Britannia, Cipla, State Bank, Mahindra & Mahindra and Asian Paints declined most. 

"For India, crude jumping to $118 from the recent $100 levels is again posing a major worry. This kind of short-term volatility in crude is highly unnerving. What investors should do in these highly uncertain times is to keep cool and wait for clarity to emerge on the war front," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.  

The expert said IT and pharma sectors are safe havens as they won't be impacted at all by crude spike and potentially higher inflation 

Earlier, Oil prices extended gains on Tuesday as some European Union members discussed a potential oil embargo on Russia and attacks on Saudi facilities sent jitters through the market, said Reuters.

Front-month West Texas Intermediate futures were up $2.20, or 1.96%, to $114.32 a barrel on NYMEX and Brent futures were up $3.18, or 2.75%, to $118.80 a barrel on the Intercontinental Exchange at 0440 GMT.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)