Thursday's sharp fall was triggered after Russia announced a military operation in Ukraine. Sensex settled 4.7 per cent or 2,702 points down at 54,529 points, whereas Nifty 4.8 per cent down, or 815 points down at 16,248 points.
On Friday, at 12.55 p.m., Sensex was 2.6 per cent or 1,392 points up at 55,922 points, whereas Nifty 2.6 per cent or 421 points up at 16,669 points.
According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "Market has corrected significantly with Nifty, Nifty Midcap and Nifty Smallcap declining sharply by 12 per cent, 20 per cent and 22 per cent, respectively. This has made valuations fair with Nifty trading around 17 times FY23 earnings."
"But we are in the context of a war with a high level of uncertainty. A lot will depend on whether this will be a short war or will it get prolonged. If it turns out to be a short war with Russia succeeding in putting a pro-Russian government in Ukraine soon, markets are likely to bounce back."
On the other hand, if the war gets prolonged, the uncertainty will impact markets, Vijayakumar added.