Stock Market Update: Nifty50 Surpasses 24,900 as BSE Sensex Begins Trading
The Indian stock market opened on a volatile note on Tuesday, with the Nifty50 hovering above 24,900 and the BSE Sensex near 81,750. As of 9:18 AM, Nifty50 was trading at 24,933.10, reflecting a slight decline of 13 points or 0.054%. Meanwhile, BSE Sensex stood at 81,743.28, down 53 points or 0.065%. The ongoing tensions between Israel and Iran are expected to keep defense and oil-related stocks under scrutiny, while sectors linked to the monsoon, such as fertilizers and agro-chemicals, may see increased activity due to predictions of above-average rainfall.
Market Resilience Amid Global Tensions
Despite the escalating conflict between Iran and Israel, stock markets have shown resilience, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He noted that the decline in the US volatility index, CBOE, indicates that significant market corrections are unlikely unless the situation deteriorates dramatically. Retail investors have been actively buying during market dips, which has contributed to this stability. In the past four trading days since the conflict began, foreign institutional investors (FIIs) sold stocks worth Rs 8,080 crores. However, this selling was overshadowed by domestic institutional investors (DIIs), who purchased shares worth Rs 19,800 crores. The consistent inflow of retail funds, primarily through systematic investment plans (SIPs), has empowered DIIs to maintain their buying momentum.
Technical Levels and Market Outlook
Vijayakumar highlighted that Nifty has established support at the 24,500 level, while resistance is anticipated at 25,000. He advised investors to remain cautious yet engaged in the market, suggesting that it is prudent to buy during dips. The overall sentiment remains positive, with many investors viewing current valuations as attractive. The market’s ability to absorb the impact of geopolitical tensions reflects a growing confidence among domestic investors.
Global Market Influences
On the global front, US markets ended positively on Monday, buoyed by a decline in petroleum prices. The easing of concerns regarding inflation from rising energy costs was attributed to the fact that oil production and distribution remained unaffected amid the Israel-Iran confrontations. Asian equities, however, experienced a downturn, with only minor gains in Japanese and South Korean markets. The S&P 500 index in the US advanced approximately 1%, surpassing the 6,000 mark. The US dollar showed slight strengthening on Tuesday, while most currencies traded within narrow ranges as investors remained cautious about the ongoing tensions in the Middle East and awaited upcoming central bank meetings.
Oil Prices and Market Dynamics
Oil prices surged by more than 2% on Tuesday, driven by escalating tensions between Iran and Israel. US President Donald Trump’s call for the evacuation of Tehran has raised concerns about regional stability and potential disruptions to oil supply. On Monday, foreign portfolio investors (FPIs) recorded net sales of Rs 2,539 crores, while domestic institutional investors (DIIs) bought shares worth Rs 5,781 crores. Additionally, FII net short positions in futures decreased from Rs 1.04 lakh crore on Friday to Rs 1.01 lakh crore on Monday, indicating a shift in market dynamics. As the situation evolves, investors will continue to monitor developments closely, particularly in sectors sensitive to geopolitical events.
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