Indian benchmark indices began Wednesday’s session on a positive note, tracking favourable global market signals. The Nifty 50 hovered near the 24,350 mark, while the Sensex gained 239.12 points, or 0.31 per cent, to trade at 77,895.21. As of 9:23 am, the Nifty stood at 24,346.30, up 11.75 points, or 0.05 per cent.
V K Vijayakumar, Chief Investment Strategist, Geojit Investments, noted, “There are two factors which are positive for the market today. One, news of another ceasefire between the US and Iran and initiatives for resuming shipping through the Strait of Hormuz have brought down the Brent crude rate to $86.3. Since a rally in the Indian market has been mainly constrained by the elevated crude prices, this sharp dip in crude is a positive. Two, the dip in bond yields in the US (10-year at 4.64 per cent) is a mild positive for equity markets, globally.”
He added, “But these are not good enough to trigger a sharp rally in the Nifty since many mega caps in the Nifty are technically weak. The market rally will be led by the broader market which is driven by supporting fundamentals and momentum. It is also important to note that valuations in the broader market are getting stretched.”
Stock Market Today: Sensex Jumps 240 Points; Nifty At 24,346
