Nifty logs 4th consecutive weekly loss amid geopolitical tensions

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The Nifty 50 posted declines in three out of four sessions in the holiday-shortened week. The surge in crude prices and escalation of geopolitical tensions due to Russia's invasion of Ukraine weighed on sentiments. 

Day-wise movement in Nifty 50

  • After opening on a weak note, the index made a sharp recovery to end with modest gains on Monday. 
  • The market remained closed on Tuesday on account of Mahashivratri.
  • The market ended with deep losses on Wednesday, as oil prices hitting a 7-year high weighed on investor sentiment. 
  • On Thursday, the market ended a volatile session with modest losses. The Nifty closed just below the 16,500-mark. The crude oil price touched $116 per barrel, and the rupee continued to depreciate.
  • Indian equity benchmarks Sensex and Nifty50 extended losses to the third session in a row on Friday, as geopolitical tensions remained in focus as investors closely tracked news updates on the Russia-Ukraine war. For the week, the Nifty ended 2.5% lower. 

Top Sectoral gainers and losers

  • The Nifty Auto sector was the worst hit after auto companies reported muted numbers for the month of February. 
  • Nifty Metal and Nifty IT were among the only gainers in the week.

Top Nifty losers during the week

  • Auto majors Maruti Suzuki, Eicher Motors, Hero Motocorp and M&M were among the biggest draggers
  • Tata Steel was the biggest gainer jumping 12% in the week. 
  • Metal stocks gained as Russia is a major exporter of metals such as aluminum, Nickel, Coal and steel. Sanctions placed on the country have disrupted the supply leading to a rise in prices. 
  • It may take up to several months to reinstate the entire supply chain. Prices are likely to remain elevated until this is achieved, thus benefiting these metal companies, note analysts. 

Here is a quick recap of the market moving developments

NIFTY rejig - The rebalancing is happening in NIFTY and other major NIFTY indexes. The change will be effective from March 31st, 2022. For NIFTY, Apollo Hospitals Ltd will be included in the Nifty 50 Index and Indian Oil Corp will be excluded. Recently listed internet companies, Zomato, Paytm, and Nykaa, will become part of NIFTY NEXT50. Check our detailed report on the changes here.

UPL stock update - UPL share price was in the news throughout the week. The company has received interest from global competitors for takeover. It has also announced a Rs 11,000 crore buyback plan and much more. Check all the details in our detailed report here.

Auto sales number for February - The auto industry reported a mixed set of sales numbers for the Feb month. The chip shortage continued to be a concern for the companies but the impact is much lower now. The sector witnessed month-on-month growth in the passenger vehicle and commercial vehicles space amid improving macroeconomics while muted demand prospects persisted in the two-wheeler space. Check our detailed report for all companies and categories.

Crude Oil prices rise - The rising crude oil price was a hot topic of discussion throughout the week. As the crude oil price touched $116 per barrel, the impact was visible on the market. The companies where crude oil acts as raw material were most impacted. However, sugar companies found themselves in a sweet spot as ethanol blending may get a boost.