Stock market today: Nifty50 opens in red; BSE Sensex down 250 points
Trade discussions between India and the US remain crucial, as Commerce Minister Piyush Goyal conducts meetings with US Trade Representative Jamieson Greer in New York to expedite discussions.Market analysts anticipate sustained market strength, backed by improving domestic consumption attributed to GST reforms and seasonal festival-related activities.Dr.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Now a concern in the market globally is the high asset prices.
Prices of assets be it stocks, gold, silver, bit coins are high.
This concern was articulated by the Fed chief Jerome Powell yesterday in his speech at Rhode Island.
Powell reiterated the risks to inflation and employment, too, signalling that the Fed policy, going forward, will be challenging.”“In India, even though the Nifty is around 4% down from the September 2024 peak, valuations continue to be higher than the long-term averages.
But these valuations will become justifiable when the earnings growth picks up, hopefully in FY27.
But the valuations in the smallcap segment continue to be elevated with potential for further correction.
Investors should give emphasis to valuations and growth potential while investing on market declines.“US equities declined on Tuesday after Federal Reserve Chair Jerome Powell indicated the need to balance inflation concerns against softening employment conditions in upcoming rate decisions.Asian equities declined following technology sector-led losses that ended S&P 500’s three-day advance, whilst varied comments from Federal Reserve officials created uncertainty regarding interest rate reduction timing.Gold remained stable near its peak on Wednesday as market participants evaluated Jerome Powell’s conservative remarks regarding interest rate reductions, whilst anticipating a crucial inflation report later this week for additional policy direction.Foreign portfolio investors sold shares worth Rs 3,551 crore net on Tuesday.
Domestic institutional investors were net buyrs at Rs 2,671 crore.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own.
These opinions do not represent the views of The Times of India)
