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Nifty opened on a firm note and remained positive throughout the day. It closed with gains of 410 points (+2.5%) at 16,658 levels. Broader markets outperformed and closed with gains of more than 4%. All sectorial indices ended in green with Realty and Metals up more than 5%. The volatility index, India VIX declined sharply by 16.4% to 26.7 levels.

Global markets including Indian equities witnessed a smart pull back after yesterday’s crash as the new sanction imposed by US & UK appeared to be less sever for the Russian economy. Also, US and NATO refused to send their soldiers to Ukraine, thus preventing extreme war like situation. Further, the geo-political turmoil has led to an expectation that US Fed may not aggressively increase interest rates in its March meeting, thus adding to positive sentiments today. 

While markets have seen a pullback – volatility is expected to remain high over the next few days. 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 a 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.

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