Russia-Ukraine war, GDP estimates, PMI data, auto sales numbers to dominate equity markets this week

Russia’s attack on Ukraine and India’s macroeconomic signals will dominate the Indian stock market this week, analysts suggest. While Russia’s war in Ukraine has reached Kyiv, the release of GDP estimates on February 28 and PMI data for manufacturing and services sectors will also set the market mood. Additionally, auto companies will also release monthly sales numbers at the start of the month.

What experts say

“With earnings season behind us and given the overall sentiments, markets are expected to move in sync with global peers in the coming week. A close eye will be kept on the developments concerning the Russia – Ukraine crisis and considering the inflation overhang, market participants will also observe movements in energy prices, “Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, told news agency PTI.

Also read: Ukraine-Russia crisis LIVE: Offensive will not stop for talks, Kremlin warns Ukraine

For the near term, experts think volatility will remain high. “Market will be keeping a close watch on the ongoing Russia – Ukraine conflict over the weekend for any further cues. For the near term, Thursday’s low of 16200 may act as strong support. While traders need to remain cautious of sharp volatility, investors can use the current dip to gradually add quality blue-chip companies in their portfolios, “said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, told the news agency.

The stock markets situation

After seven consecutive days of decline, Indian equities had rallied on Friday, rising over 2 per cent each, as Western sanctions on Russia, following its attack on Ukraine, stopped short of the harshest measures.

Global equities also advanced but US futures were lower as Russian troops pressed toward the capital of Ukraine.

Market benchmarks rose in London, Paris, Tokyo and Shanghai but fell in Hong Kong. Russian shares gained 15 per cent, rebounding after a nosedive on Thursday as the invasion of Ukraine began.

Also read: Nifty ends above 16,600, Sensex rallies 1300 pts; all sectoral indices higher

Back home, the Sensex rose 1,328.61 points, or 2.4 per cent, to end the day at 55,858.52, while Nifty climbed 410.40 points to 16,658.40.

On the Nifty, Coal India, Tata Motors, Tata Steel, Adani Ports and IndusInd Bank were the top gainers, while Britannia Industries, Nestle India and Hindustan Unilever Ltd. were the worst hit.

All sectoral indices ended higher, with PSU Bank, power, metal and realty indices up 4-6 per cent. Midcaps and Smallcaps rose 4 per cent each.

Also read: Rakesh Jhunjhunwala stock surges ahead of dividend declaration. Should you buy?

Russia targets airfields, fuel facilities in Ukraine

Globally, Russia’s invasion of Ukraine will dominate the markets, especial energy prices with Putin’s Russian forces specifically targeting airfields and fuel facilities. The impact of EU and US sanctions on Russia will also influence investor sentiments.

“While the developments on the Russia-Ukraine front will keep influencing the directions of the market, resumption of supply disruptions and commodity inflation will hurt a lot of economies at a time when they were starting to recover post Omicron threat,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

With inputs from PTI

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