The market’s short-term direction is likely to be influenced by INR-USD movements. (AI image)
Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, tanked in opening trade on Tuesday. While Nifty50 went below 25,900, BSE Sensex was down over 380 points. At 9:18 AM, Nifty50 was trading at 25,836.45, down 124 points or 0.48%. BSE Sensex was at 84,716.60, down 386 points or 0.45%.The market’s short-term direction is likely to be influenced by INR-USD movements, foreign Institutional Investor flows and secondary-market liquidity conditions, particularly given the high investor participation in primary markets.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Failure of the market to hold on to the recent all-time high and absence of fresh triggers for a rally have resulted in some sort of fatigue among investors. The fact that vast majority of retail investors haven’t participated in this narrow rally dominated by a few largecaps, makes the retail disillusionment heavy. Even when the Nifty set a new record, 320 stocks in NSE 500 were trading below their peaks leaving the retail investors with portfolios dominated by mid and small caps unhappy., “Consequently we are seeing further selling in the mid and smallcaps pushing their prices down, while the strong largecaps which led this rally are remaining resilient. Briefly, what we are witnessing now is fundamentals exerting influence on the market. Overvalued stocks in the mid and smallcap segments are getting dumped impacting their share prices. There is some more time for this trend to play out. Further correction in midcaps will open up opportunities for long-term investors. to slowly accumulate high quality growth stocks in this segment. Defense stocks now offer value.”US markets closed lower on Monday, with most S&P 500 sectors declining. Treasury yields increased as investors awaited the Federal Reserve’s monetary policy announcement. The Dow declined 0.45%, S&P 500 fell 0.35%, and Nasdaq Composite decreased 0.14%.Asian markets dropped on Tuesday, with traders concerned about the Federal Reserve’s easing trajectory beyond the anticipated rate cut this week. Following a 2% decline in the previous session, oil prices stabilized on Tuesday as investors monitored peace negotiations regarding Russia’s Ukraine conflict and awaited the upcoming US interest rate decision.Foreign portfolio investors sold shares worth Rs 655 crore net on Monday, whereas domestic institutional investors were net purchasers at Rs 2,542 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)
