Stock market today: Nifty50 and BSE Sensex continued their rally on Wednesday rising almost 1% in opening trade. While Nifty50 went above 23,100, BSE Sensex rose over 700 points. At 9:16 AM, Nifty50 was trading at 23,126.65, up 214 points or 0.94%. BSE Sensex was at 74,775.22, up 707 points or 0.95%.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Hope is returning to the market with indications of deescalation in the conflict. Remarks from President Trump and from the Iranian regime indicate that the conflict might end soon. Particularly the reiteration from Iran that “non-hostile ships can transit the Strait of Hormuz” is good news that will mitigate India’s energy concerns. These positive geopolitical developments have reflected a sharp decline in Brent crude to around $98. The US 10-year yield also has declined. Gold has recovered. If this positive development sustains, there is room for a sharp rebound in the market. But if the recovery is to sustain FIIs should stop their big sustained selling, which, in turn, will require stability in the rupee. Yesterday’s 399 point recovery in the Nifty was caused more by short covering. In the near-term, mid and small caps can rebound more than large caps since there is no worry of significant FII selling in this segment.”Asian equities moved higher as optimism grew around Washington’s efforts to resolve the nearly month-long conflict in the Middle East. The dollar also weakened.US markets, however, saw choppy trading during Tuesday’s session, as investors weighed concerns over rising oil prices against hopes for a resolution to the conflict. This came even as reports indicated that additional American troops could be deployed to the region despite signs of diplomatic progress.Oil prices fell more than 5% on Wednesday on expectations that a potential ceasefire could ease supply disruptions from the key Middle East producing region, following reports that the US had presented Iran with a 15-point proposal to end the conflict.On the domestic front, foreign institutional investors remained net sellers, offloading shares worth Rs 8,009.56 crore on Tuesday, while domestic institutional investors provided some support by purchasing equities worth Rs 5,867.15 crore.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
