Post Market views - Feb 22, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic indices settled lower due to the tumultuous global scenario. The Nifty index declined by 0.7%. Broader markets underperformed in comparison to the main ndices as Nifty Midcap and Small cap lowered by 1% and 2% respectively. All sectoral indices ended in red. Nifty Media declined the most by 3.3% followed by Nifty Reality (-2.8%) and Nifty PSU Bank (-1.6%).

US equity markets were closed on Monday for the Presidents Day holiday. However, markets continue to face headwinds as the Russia-Ukraine crisis escalates. Stock index futures tumbled after Russian President Putin recognized two breakaway regions in eastern Ukraine, increasing concerns about a major war. Oil prices rose as the Ukraine news worsened existing supply concerns that have pushed prices near $100 a barrel. The S&P energy sector has been by far the best performer in 2022, up nearly 22%, and one of only two S&P sectors that are positive on the year.

The geopolitical pot is boiling. If that is no enough, the Fed's aggressive tone on rate hike is keeping market participants on the edge. The LIC's upcoming IPO - India's biggest ever public listing-continues to make waves. As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre's check list. As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government.

Source : Equity Bulls

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