Stock market today:
Nifty50 and
BSE Sensex rallied in trade for the second consecutive day on Tuesday amid ongoing Middle East tensions. While Nifty50 went above 25,650, BSE Sensex rose over 800 points intraday. Nifty50 closed the day at 23,581.15, up 172 points or 0.74%. BSE Sensex ended at 76,070.84, up 568 points or 0.75%.
Indian markets recovered on Monday, but analysts cautioned that volatility may persist as investors remain wary of geopolitical tensions in West Asia and fluctuations in global energy prices. The ongoing conflict continues to weigh on sentiment and keep overall risk appetite restrained.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “With total uncertainty and confusion regarding the trend of the war continuing, this uncertainty is getting reflected in the market, too. Even seasoned experts lack conviction to advise investors on the right strategy. All that can be said with conviction now is: remain invested and continue with SIPs.”
“Nifty’s sharp bounce of 257 points yesterday was triggered mainly by short-covering from oversold territory. This bounce back is unlikely to sustain, given the massive selling by FIIs which touched Rs 9366 crores yesterday. In the near-term this FII selling will continue since other markets like the South Korean and Taiwanese markets are giving better returns to FIIs. More importantly, the earnings growth prospects in these markets look much better compared to India’s. In brief, the sustained FII selling is likely to weigh on markets in the near-term."
Foreign portfolio investors (FPIs) remained net sellers during the session, offloading shares worth Rs 9,365 crore. In contrast, domestic institutional investors (DIIs) provided support to the market by purchasing equities worth Rs 12,594 crore.
Wall Street closed sharply higher on Monday, driven by gains in artificial intelligence related stocks. Meta Platforms rose after a report indicated that the company is preparing for sweeping layoffs.
Asian markets also opened higher, supported by optimism that a greater number of oil tankers may soon be able to pass through the strategically important Strait of Hormuz. The development lifted sentiment following the strong performance on Wall Street.
Oil prices climbed more than 2 per cent in early trading on Tuesday, reversing part of the losses recorded in the previous session.
(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)Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.
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