Mr Mitul Shah, Head Of Research at Reliance Securities.
Domestic markets closed higher despite the continued uncertainties with respect to the Russia-Ukraine conflict. S&P BSE SENSEX gained 0.15%. S&P BSE MidCap and S&P BSE SmallCap were up by 0.4% and 0.9% respectively. Most sectoral indices ended in green. S&P BSE Oil & Gas increased the most at 0.98% followed by S&P BSE Utilities (+0.6%).
U.S equities tumbled as talks between Ukraine and Russia on Thursday failed to achieve any measures for peace between the two countries. The Dow Jones fell 0.34% while the S&P 500 lost 0.43%. The Nasdaq dropped 0.95%. The benchmark U.S. 10-year Treasury yield rose above 2% for the first time in two weeks. the CPI data suggested that the FOMC could hike rates more aggressively to curb inflation. US consumer prices surged in February to 7.9%, the largest annual increase in 40 years, and inflation is poised to accelerate further in the months as Russia's war against Ukraine drives up the costs.
Market may remain volatile due to the Russia-Ukraine crisis. Trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term. The Indian economy is in good shape given the underlying stellar corporate earnings momentum, the cleansed balance sheets, improving asset quality of the banks, levers in place for capex cycle revival and credit off-take. This coupled with increasing DII participation can revive the markets gradually once prevailing clouds of uncertainty disappear. However, over near-term war issue would have high negative bearings on global equity markets including Indian equities.