Kamal Ghorui
Stock market today: Sensex and Nifty50 rallied strongly in opening trade on Wednesday after optimism surrounding renewed US-Iran peace talks led oil prices to drop. While Nifty50 went above 24,200, BSE Sensex rose over 1,200 points. At 9:17 AM, Nifty50 was at around 24,223.45, up 381 points or 1.60%. BSE Sensex was at 78,135.23, up 1,288 points or 1.68%.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Hopes of resumption of US-Iran talks, Israel-Lebanon talks and crash in Brent crude by $10 dollars in two days augur well for the market in the near-term. The resilience of markets worldwide, despite the IMF’s warning about a global recession if the conflict prolongs, is an indication that the market is discounting an end to the conflict soon.In the extremely volatile scenario through which markets have been moving, it is important that investors remain invested. The benefit from sharp rebounds in the market will be lost to investors who sell out and keep away from the market.In the near-term large caps are likely to stage a smart comeback, but may again face headwinds when FIIs resume selling. The excellent performance of South Korean and Taiwanese markets and the significant market momentum there might nudge FPIs to sell again in India. Sustained resilience in the near-term is likely to be in mid and small caps which will not come under the pressure of FPI selling.”Global markets staged a recovery after six straight weeks of losses, supported by improving global cues and optimism around a temporary ceasefire between the United States and Iran. However, the rebound remained fragile as geopolitical risks persisted, and sentiment is expected to be tested again on Wednesday following the collapse of peace talks and renewed rhetoric from Donald Trump.In the US, equities closed slightly higher on Tuesday, with the S&P 500 approaching a record high. Investor confidence was supported by expectations that diplomatic efforts between Washington and Tehran could resume, which also contributed to a decline in oil prices and a softer dollar.Crude oil extended its losses into Wednesday, marking a second consecutive day of decline amid hopes that renewed negotiations could ease supply concerns in the Middle East. A potential reopening of the Strait of Hormuz, a key route for global oil shipments, further weighed on prices.(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)
