Pre-Market views - Feb 22, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

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 on after Russian President Vladimir Putin recognized two breakaway regions in eastern Ukraine, increasing concerns about a major war. Oil prices rose as the Ukraine news exacerbated 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.

Domestic equities closed lower after volatile session as geopolitical disturbances continue to throttle the markets. Nifty declined by 0.4%. Broader markets underperformed in comparison to main indices with Nifty Midcap and SmallCap decreasing by 1.3% and 2.9% respectively. All sectoral indices ended in red except Nifty Bank (+0.3%), Nifty Media declined the most at 2.8% followed by Nifty Metal (-2.2%) and Nifty PSU Banks (-1.4%). 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. The markets are likely to see gap down opening, SGX nifty is down 165 compared to yesterday's spot Nifty closing. Asian markets trading in red (Nikkei is down 2.1%, while Hang seng is down 2.5%)

Source : Equity Bulls

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PreMarketViews RelianceSecurities Nifty UkraineCrisis