Benchmark stock market indices started the day on a positive note on Wednesday, driven by optimistic investor sentiment regarding potential talks between Iran and the US. The S&P BSE Sensex surged by 1,189.51 points to reach 78,037.08, while the NSE Nifty50 climbed by 366.40 points to 24,209.05 by 9:26 am. Chief Investment Strategist at Geojit Investments Limited, Dr. VK Vijayakumar, highlighted the positive impact of potential US-Iran and Israel-Lebanon talks, alongside a $10 drop in Brent crude over two days, on the market’s outlook in the short term. He noted the market’s resilience globally, despite warnings from the IMF about a possible global recession if conflicts persist, indicating optimism for a resolution in the near future.
Amidst the current market volatility, it is crucial for investors to stay engaged to benefit from potential market rebounds rather than miss out by exiting the market prematurely. In the short term, large-cap stocks are expected to make a strong recovery, but they may encounter challenges when Foreign Institutional Investors (FIIs) resume selling. Meanwhile, mid and small-cap stocks are forecasted to maintain resilience in the near term, as they are less susceptible to FPI selling pressure.
The overall market sentiment remains positive, with a focus on potential developments in the geopolitical landscape that could impact market dynamics.