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By Malvika Gurung
Investing.com — A day after Indian equity benchmark indices recorded their worst falls in 21 months, the domestic market rebounded, snapping its 7-day losing run.
At 2:35 pm on Friday, headline indices and were trading 2.5% and almost 1,300 points or 2.38% higher, mirroring an overnight rally on Wall Street and positive cues from Asian markets.
On Thursday, Russian President Vladimir Putin announced a military operation in eastern regions of Ukraine, which sent the to hit multi-year peaks, devastating equity markets globally.
Investors worried that Russia’s invasion of Ukraine would lead to Western countries imposing sanctions on Russia, including exclusion from the SWIFT payment system, which would, in turn, drive a massive rally in the prices of global commodities, including oil, at a time when markets are fearful of sharp interest rate spikes by the US Fed to curb the soaring inflation.
However, the fresh US sanctions against Russia neither excluded Russia from the SWIFT system nor imposed any restrictions on Russia’s energy exports. Markets took a breather on this development.
Secondly, due to aggravated Russia-Ukraine disturbances and its unprecedented impact on global health, at a time when inflation is at its multi-year peak, investors are of the view that the US Fed will refrain from adopting its aggressive stance on monetary tightening, and raise interest rates by 25 bps instead of 50 bps, as feared earlier.
All sectoral indices were trading in the green, led by , up 5.4%, its highest since Apr 2020. was trading 3.5%.
Russian markets rebounded, as index climbed 13%, after tanking 45% on Thursday.
Moreover, US Prez Biden informed that they were working with allies on a release of oil from strategic reserves after crude prices soared, easing oil prices to simmer down, even if it was only by a bit.
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