Stocks rally for 3rd day as Russia Ukraine talks raise hopes of de-escalation of war

Mumbai: Extending gains for a third day in a row, benchmark Sensex and Nifty on Wednesday rallied over 1 per cent to end at over six-week high levels on buying in RIL, Infosys, HDFC twins and ICICI Bank following gains in Asian equities amid hopes of a breakthrough in Russia-Ukraine peace talks.

The 30-share BSE Sensex surged by 740.34 points or 1.28 per cent to settle at over six-week high of 58,683.99, a day ahead of the derivatives expiry on Thursday. As many as 21 of Sensex stocks ended in green. During the day, it jumped 784.13 points or 1.35 per cent to 58,727.78.

The broader NSE Nifty climbed 172.95 points or 1 per cent to settle at 17,498.25, the highest closing level since February 10.

In the three-day rally, Sensex has soared 2.29 points or 1321 points while 50-issue Nifty has jumped 2 per cent or 345 points to close near the 17,500 level.

Among Sensex stocks, Bajaj Finserv was the biggest gainer, rising by 3.82 per cent. Mahindra & Mahindra, Bajaj Finance, Power Grid, HDFC, ICICI Bank, Nestle, Maruti, Reliance Industries Limited were among the lead gainers.

On the other hand, ITC, Tata Steel, Tech Mahindra, Bharti Airtel and Titan were among the laggards.

"High volatility prevailed in the global market, but peace talks between Russia and Ukraine gave hopes of de-escalation of the war, helping the domestic market to trade with confidence. The ease in crude oil and commodity prices supported the market as it will help corporates to reduce their margin pressure," Vinod Nair, Head of Research at Geojit Financial Services said.

Mitul Shah, Head of Research at Reliance Securities, also said that Russia-Ukraine peace talks have reinstated optimism among investors.

In the broader market, the BSE smallcap gauge jumped 1.09 per cent and midcap index climbed 0.78 per cent.

"Bulls were back in action ahead of the F&O expiry, which helped Sensex close above the crucial 58,000-mark. Investors cheered the reports that both Russia and Ukraine are engaged in peace talks, which is providing some stability to markets globally," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said.

Among sectoral indices, BSE Finance rose by 1.71 per cent, BSE realty by 1.49 per cent, BSE Bankex by 1.36 per cent, and industrials by 1.25 per cent.

Elsewhere in Asia, Seoul, Shanghai and Hong Kong settled with gains, while Tokyo ended lower. Stock exchanges in the US ended with gains on Tuesday.

European stock markets traded with losses in mid-day deals due to profit taking after a stellar rally.

Meanwhile, international oil benchmark Brent crude jumped 2.25 per cent to USD 112.7 per barrel.

Foreign portfolio investors turned buyers as they bought shares worth Rs 35.47 crore on Tuesday, according to stock exchange data. 

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