Indian Stock Market Rallies Despite Geopolitical Strains; Buoyed By Strong Domestic Sectors

The Indian stock market displayed resilience on Friday, opening on a positive note despite escalating geopolitical tensions between Russia and Ukraine.

Early trading saw notable gains in PSU banks and the realty sector, underscoring investor confidence in domestic sectors.

By 9:41 AM, the benchmark indices were trading higher. The Sensex climbed 459.71 points (0.60%) to 77,615.50, while the Nifty rose 139.85 points (0.60%) to reach 23,489.75, reflecting optimism among traders.

Market Activity Key Insights

Analysts highlighted several key insights emerging from current market trends.

They noted, “The Russia-Ukraine war has escalated with Russia firing even Inter Continental Ballistic Missiles. The relentless selling by FIIs continues with the selling spree reaching a record continuous 37 days. But the market has corrected only by about 11 percent from the September peak.”

“This is a correction, not a crash. The mother market US is bullish with 25.43 percent return YTD. These factors suggest that the undertone of this market is positive,” analysts stated.

Sector-Wise Performance

The market showed an overall positive trend, with 1,713 stocks gaining and 492 declining on the National Stock Exchange (NSE).

Nifty Bank climbed 517.25 points (1.03%) to reach 50,890.15. Meanwhile, the Nifty Midcap 100 advanced by 397.55 points (0.73%) to trade at 54,782.90, and the Nifty Smallcap 100 rose 121.85 points (0.69%) to settle at 17,718.45.

Among Sensex stocks, SBI, ICICI Bank, Tata Motors, Power Grid, IndusInd Bank, UltraTech Cement, NTPC, Bajaj Finserv, Tech Mahindra, and Bajaj Finance led the gains, while Axis Bank stood out as one of the top decliners.

Global Context

Asian markets presented a mixed picture, with indices in Jakarta, Bangkok, Seoul, and Tokyo trading higher, while Hong Kong and Shanghai lagged.

Meanwhile, Wall Street closed in green during the previous session, adding to the optimistic sentiment.

Earlier, on 21 November, FIIs offloaded equities worth Rs 5,320 crore, continuing their selling spree.

However, this was partially offset by domestic institutional investors (DIIs), who bought equities worth Rs 4,200 crore.

Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty’s drop to a fresh low has shifted attention to a key level around 23,200.

“We are also close to a time-reversal area which covers the early part of next week, with both daily and weekly momentum now deeply oversold. Still, unless prices show bullish behaviour at price and time support, bears will have the upper hand,” he added.

Also Read: Adani Group Denies Bribery Allegations; Vows Legal Action