Markets extend gains on hopes of Russia-Ukraine talks

Mumbai: Indian stock indices jumped over 2% on Wednesday, extending their rebound for a second day, as investors shrugged off uncertainties over the ban on Russian oil imports by the US.

Reports citing Ukrainian President Volodymyr Zelenskyy that the country was not pushing to join the Nato alliance and is open to discussions about the control of Russian-backed separatist regions - among two of Russia's stated reasons for the invasion - alleviated some concerns, prompting traders to cut some of their bearish bets in a market that was considered oversold.

US, European Stocks Rally

"It was a relief rally as investors covered short positions on reports of a likely talk between Russia and Ukraine," said Shrikant Chouhan, head of equity research, retail, at Kotak Securities. "Markets were already in an oversold position and the global rout had transmitted to India due to the raging war."

The Sensex ended 1,223.24 points or 2.3% up at 54,647.33 and the Nifty closed 369.60 points or 2.3% higher at 16,383.05. The indices had gained 1% in the previous session after four straight days of losses. The volatility index or VIX - a measure of traders' perception of near-term risks - declined 4% to 27.47 but analysts said the levels do not indicate that the market is out of danger yet. Foreign investors continued their selling, offloading Indian shares worth Rs 4,818.71 crore, while domestic institutional investors bought shares worth Rs 6,489.59 crore.