Stock Market Today: Benchmark stock market indices opened at an optimistic note with the wide benchmark Sensex surging over 200 points to hit a new all-time high, while the Nifty50 crossed the 25,000 mark for the first time ever. It was a strong opening to the benchmark indices, riding on the positive global sentiment off comments from the US Federal Reserve in the recent past.
Sensex and Nifty50 Opening Strong
At 9:21 a.m., the S&P BSE Sensex was at 82,076.17, up 334.83 points, and the NSE Nifty50 gained 104.70 points to trade at 25,055.85. This upward momentum was supported by major gains in key stocks, wherein Maruti Suzuki, Coal India, Hindalco, JSW Steel, and Power Grid emerged as the key gainers.
Despite this positive trend, some stocks remained a bit on the losing side. The top losers on the Nifty50 were M&M, BPCL, Hero MotoCorp, Sun Pharma and Eicher Motors, indicating that really the market has been mixed.
Market Boosted by Positive Comments from US Federal Reserve
Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The signals from the US Federal Reserve of a rate cut likely in September, turned out to be the Eligor for the market.”. “Fed chief’s hint of a rate cut is music to global equity markets,” says Vijayakumar. He said that, actually, it is the Fed comments on the normalising US economy that is really music to the ears of market bulls. The sharp fall in the 10-year US bond yield to 4.05% may halt, or even reverse, the recent FII selling in the cash market. If both the FIIs and domestic institutional investors turn buyers, the market may surge further. However, Vijayakumar said it would be very tough to sustain this rally as the valuations have already been stretched.
Tensions in West Asia and Their Potential Market Impact
Noting that, however, Vijayakumar said geopolitical risks had turned higher with the alleged killing of a top Hamas commander in Iran, which had ratcheted up tensions in West Asia, increasing chances of spillover and impacting market stability eventually.
Within such dynamics, Vijayakumar witnessed a beautiful cyclical upturn within the Q1 results of the automobile sector, indicating that the trend may continue. The performance of the market at this point in time shows a complex interaction between global economic signals and regional geopolitical developments.