Stock market today: Nifty50 opens in red; BSE Sensex down over 250 points

Stock market today (AI image)

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmarks, openedin red on Wednesday, a day after a strongly rally on the back of India-US trade deal announcement.

At 9:16 AM, Nifty50 was trading at 25,671.95, down 56 points or 0.22%. BSE Sensex was at 83,472.11, down 267 points or 0.32%.Indian equity markets posted one of their strongest single-day rallies on Tuesday after India and the United States unveiled a long-awaited trade agreement, easing tariff-related worries that had pressured domestic stocks since April 25.

The sharp rebound was driven by renewed investor confidence following clarity on trade, with analysts projecting that the positive momentum could continue in the near term.Market experts said sentiment is likely to remain constructive, supported by a combination of recent trade developments with the US and the European Union, announcements made in the Union Budget, and stock-specific triggers emerging from the ongoing third-quarter earnings season.Dr.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The rally fuelled by the US-India trade deal will face hurdles to sustain.

The IT selloff in the US yesterday will drag the Indian IT index,too, constraining the rally in the Indian market.

Since valuations continue to be high there is no fundamental support for a sustained rally.

A trigger from monetary policy scheduled on 6th Feb is unlikely since the MPC is expected to retain the rates and stance with a dovish tone. The economy is now in a state where a monetary stimulus is not required.

So, it is likely that the MPC will wait to see the monetary transmission play out.

The auto numbers on January suggest that the buoyant demand continues.” “Yesterday’s 639 point rally in the market was mainly driven by FII short covering and their buying of Rs 5236 crores in the cash market.

Given the valuations, this bullish trend is likely to run out of steam.

Investors should stick to fairly valued largecaps.

The sectors that are expected to gain from exports to the US, like textiles and apparels, gems and jewellery and marine processing will witness some more price action.“Foreign portfolio investors returned as strong buyers, purchasing equities worth Rs 5,236.28 crore during the session, exchange data showed.

Domestic institutional investors also provided support, with net buys of Rs 1,014 crore.Global cues, however, were mixed.

Wall Street ended sharply lower on Tuesday as fears that artificial intelligence could intensify competition in the software space unsettled investors.

Caution ahead of quarterly results from Alphabet and Amazon, due later this week, further weighed on sentiment in US markets.(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)