Stock market today: Nifty50 and BSE Sensex opened in red on Thursday, a day after the stock market saw a record single day gain. While Nifty50 went below 23,900, BSE Sensex was down over 500 points. At 9:16 AM, Nifty50 was trading at 23,857.40, down 140 points or 0.59%. BSE Sensex was at 77,034.34, down 529 points or 0.68%.Market analysts are of the view that the near-term outlook remains constructive.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The 2-week ceasefire between US and Iran and the consequent sharp decline in crude prices provided the trigger for a sharp 873 point rally in Nifty yesterday. The short-covering and accumulation in attractively valued financials facilitated the sharp surge in the market. Even though RBI’s monetary policy on expected lines with no change in rates and stance was not market boosting, the Governor’s comment that “growth impulses remain strong supported by robust private consumption and sustained investment demand” augurs well for the market.“With 6.9% GDP growth and 4.6% inflation projected for FY 27 by the RBI, the nominal GDP growth for FY27 can be around 11.5% which can deliver around 12% earnings growth in FY 27. With fair valuations in the market now, if the West Asian ceasefire holds, the market will remain resilient. But there are some concerns surrounding the Israeli attack on Lebanon and its fallout on the ceasefire. If crude again spikes in response to this development, the uptrend witnessed yesterday will be at risk of losing stream. The big takeaway from the rally in the market yesterday is that fairly valued stocks depressed by FPI selling and shorting will bounce back at any time. Patience is the key.” US equities ended significantly higher on Wednesday. All three major indices opened with solid gains and maintained upward momentum through the session, driven by a broad-based relief rally after a temporary pause in the conflict.However, sentiment turned cautious in Asia on Thursday. Regional markets opened lower, while S&P 500 futures slipped 0.2 per cent, after Iranian Parliament Speaker Mohammad-Bagher Ghalibaf said three clauses of the ceasefire proposal had already been violated.In commodity markets, oil prices edged higher on Thursday amid concerns that supplies from the Middle East may not fully normalise, as doubts persist over the durability of the ceasefire and restrictions remain in place around the Strait of Hormuz.Gold prices, meanwhile, were largely steady as investors refrained from taking fresh positions, awaiting clearer signals on the ceasefire negotiations as well as key US inflation data due later in the day.On the institutional front, foreign portfolio investors remained net sellers, offloading shares worth Rs 8,692 crore on Tuesday. In contrast, domestic institutional investors provided support to the market, with net purchases of Rs 7,979 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)
