Indian indices log best rise in 7wks on easing Ukraine tension

, March 4: Indian equity benchmark indices today bounced back to clock their best daily gain in seven weeks as global appetite for emerging market assets recovered on reports of easing tension between

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Sustained buying by Foreign Institutional Investors, which picked up shares worth Rs 198.53 crore yesterday as per provisional data with exchanges, amid firm opening in European stocks and rise in US index futures also boosted sentiments.

The BSE benchmark 30-share barometer resumed almost stable but improved further after morning session. It settled at more-than five-week high of 21,209.73, a rise of 263.08 points -- its biggest gain since January 13, 2014 when it had shot up by 375.72 points.

Yesterday, it had plunged by 173.47 points, or 0.82 per cent, on escalating tensions between Russia and Ukraine. The NSE 50-issue CNX Nifty crossed 6,300-mark after five weeks, but failed to close above that level. It ended at 6,297.95, a rise of 76.50 points or 1.23 per cent. This was its biggest rise since 79.05-point jump on January 15.

Russian troops reportedly were ordered to return to their bases from Ukraine border, lessening tensions today. The move spurred optimism in the global stock markets, including those in emerging markets like India. "This gave the markets optimism that, the situation was likely de-escalating, though the risk of a confrontation has not died down completely," said Dipen Shah, Head - Private Client Group Research, Kotak Securities.

ICICI Bank, RIL and L&T led 28 gainers in 30-share Sensex. Hindalco and Sesa Sterlite were the biggest gainers. Dr Reddys and Sun Pharma were the two laggards. Overall, 10 of the 12 BSE sectoral barometers gained. Metal, banking and capital goods shares led the recovery.

IT and healthcare, however, fell. In Asia-Pacific, indices were mixed with an upward bias. Those in Hong Kong, Japan, Malaysia, Thailand and Indonesia gained while the ones in China, Taiwan, Vietnam and Philippines ended lower.

PTI