scorecardresearchMarket wrap: Market ends in the red for third consecutive day; Ukraine war, inflation risk weigh on sentiment

Market wrap: Market ends in the red for third consecutive day; Ukraine war, inflation risk weigh on sentiment

Updated: 25 Mar 2022, 04:42 PM IST
TL;DR.

Elevated crude oil prices, concerns over inflation and the looming monetary policy normalisation kept the mood of the market sombre.

The 30-share pack closed 233 points, or 0.41 percent, lower at 57,362.20 while the Nifty settled with a loss of 70 points, or 0.40 percent, at 17,153.

The 30-share pack closed 233 points, or 0.41 percent, lower at 57,362.20 while the Nifty settled with a loss of 70 points, or 0.40 percent, at 17,153.

Headline indices the Sensex and the Nifty ended in the red for the third consecutive session on March 25 amid mixed global cues and concerns over-stretching Ukraine war.

Elevated crude oil prices, concerns over inflation and the looming monetary policy normalisation also kept the mood of the market sombre.

Crude oil prices eased slightly but traded near $118 a barrel. The rupee rose 16 paise to end at 76.21 against the US dollar, as per Bloomberg data.

Sensex opened in the green at 57,801.72 against the previous close of 57,595.68 but soon fell in the red as investors' sentiment remained fragile amid global uncertainty.

The 30-share pack closed 233 points, or 0.41 percent, lower at 57,362.20 while the Nifty settled with a loss of 70 points, or 0.40 percent, at 17,153.

In sync with the benchmarks, BSE Midcap (down 0.36 percent) and small cap (down 0.33 percent) indices also ended the day with losses.

Consumer durables stocks continued witnessing pressure as the sharp rise in metals and other raw material prices are expected to keep their growth and margins curtailed. The BSE Consumer Durables index fell 2.28 percent, with all components in the red, ending as the top loser among sectoral indices. BSE Realty index, on the other hand, rose 1.21 percent.

For the week, Sensex retreated 0.87 percent while the Nifty slipped 0.78 percent. BSE Midcap index saw a nominal cut of 0.15 percent while the smallcap index bucked the trend and rose 0.34 percent in the week ended March 25.

"Equity markets globally and in India continued to digest global events including the ongoing Russia Ukraine conflict, rate hike by US Fed and other central banks and rise in coronavirus cases in some countries. Supply-demand imbalances across various commodities are leading to investor interest in select stocks/index. Given the uncertainty with respect to the Russian-Ukraine conflict, oil prices and few commodities prices could likely stay volatile and elevated," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Vinod Nair, Head of Research at Geojit Financial Services pointed out the market has turned sideways with a negative bias after the recent 10 percent rally due to an increase in commodity prices, tightening monetary policy and inflationary pressure. The domestic market is showing strong resilience but to sustain the trend a lot will depend on the outcome of the war and commodity prices, he said.

"Going forward, market participants would likely keep an eye on the development surrounding the Russia-Ukraine war. On other hand, any truce between Russia and Ukraine could possibly lead to a cooling off of global crude and commodity prices. Global central bank policy moves and the policy response of the central bank in India would be the other key events to watch out for in the near term," said Shibani Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 25 Mar 2022, 04:42 PM IST