Sensex rallies over 1,000 points as investors see silver lining in US sanctions on Russia

Besides, US President Joe Biden said Washington was working with allies on a release of oil from strategic reserves after crude prices shot up. That helped soothe stock investor nerves a bit, even as Brent crude rose another 2 per cent to top $101 a barrel mark.

At 9.30 am, the BSE Sensex was ruling at 55,558.24, up 1,028.33 points or 1.89 per cent. The NSE Nifty stood at 16,572.90, up 324.95 points or 2 per cent. India VIX eased 15 per cent to 27.19.

“This is likely to be a buy on dip market, albeit with a lot of volatility in the near term,” said Nilesh Shah, Group President & MD, Kotak Mahindra AMC.

Sensex stock IndusInd Bank climbed 4.4 per cent to Rs 914.40. Tata Steel advanced 3.5 per cent to Rs 1,112. Mahindra & Mahindra added 3.01 per cent to Rs 819.80. Bajaj Finserv, Wipro, UltraTech Cement, TCS and Bajaj Finance rose up to 3 per cent. Banks such as SBI, ICICI Bank and Axis Bank advanced over 2 per cent each.

Asian markets recovered with Japan’s benchmark Nikkei 225 rising 1.4 per cent in morning trade and Australia’s S&P/ASX 200 advancing 0.5 per cent. South Korea’s Kospi jumped 1.2 per cent while Hong Kong’s Hang Seng edged higher.

Economists, however, were concerned over oil prices’ adverse impact on importers such as India.

“A sustained rise in oil and food prices would have adverse impacts on Asia’s economies, manifested through higher inflation, weaker current account and fiscal balances, and a squeeze on economic growth. In such a scenario, India, Thailand and the Philippines are the biggest losers, while Indonesia would be relative beneficiaries,” said Nomura India.

Meanwhile, explosions were heard in the Ukrainian capital of Kyiv early Friday as Russian forces pressed on with a full-scale invasion that resulted in the deaths of more than 100 Ukrainians in the first full day of fighting and could eventually rewrite the global post-Cold War security order, PTI reported.