Kamal Ghorui
Stock market today: Indian equity benchmarks, Sensex and Nifty50, continued their uptrend on Thursday on positive global cues and hopes of an early end to the US-Iran conflict. While Nifty50 went above 24,350, BSE Sensex rose over 400 points. At 9:16 AM, Nifty50 was at around 24,357.25, up 126 points or 0.52%. BSE Sensex was at 78,573.80, up 463 points or 0.59%.Market analysts are of the view that the near-term outlook remains constructive. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “It has been 47 days since the war began. What is the message from the markets? Brent crude is down to $95 level from the recent peak of $119. S&P 500 set a new record yesterday at 7022. Nasdaq also is at a new record high. The message from the crude market and the US stock market is that the West Asian conflict is unlikely to last long. The stock market is discounting an early end to the conflict.In India Nifty has rebounded from the 12% correction after the war. Nifty is up by about 2000 points from the lows touched around 30th of March. It is important to note that the mid and small caps have outperformed the large caps. In fact the small cap index is slightly above the pre-war level and mid cap index is only marginally lower by around 0.5% while Nifty is down by about 3.8% from the pre-war levels. The underperformance of the large caps is due to the big FII selling. The outperformance of the broader market may continue in the near-term.Investors should watch the stocks which are hitting 52-week highs even in a weak market. Such stocks reflect fundamental strength and accumulation by smart money.”Global cues remain supportive. Asian markets tracked gains on Wall Street, buoyed by hopes of a possible ceasefire in the Middle East and strong corporate earnings. The MSCI Asia Pacific Index rose 0.4% at the open on Thursday as investors bet that easing geopolitical tensions could moderate oil prices and support global growth.In the United States, both the S&P 500 and the Nasdaq 100 closed at record highs on Wednesday, driven by improved risk sentiment and upbeat earnings from major lenders such as Bank of America and Morgan Stanley. US President Donald Trump said the conflict involving Israel was “close to over,” with the White House signalling optimism about a potential agreement. However, industry sources cautioned that traffic through the Strait of Hormuz, a critical route for global oil and gas flows, remains significantly below normal levels.Oil prices edged lower in early Thursday trade as optimism around easing tensions outweighed concerns over supply disruptions.On the domestic front, foreign portfolio investors were net buyers of equities worth Rs 666 crore on Wednesday, while domestic institutional investors also remained supportive, with net purchases of Rs 569 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)
