Benchmark stock market indices kicked off the day on a positive note on Tuesday in response to news of potential peace talks between Iran and the US. Additionally, the beginning of Q4 earnings announcements has captivated investors’ attention.
The S&P BSE Sensex surged by 370.07 points to reach 78,890.37, while the NSE Nifty50 climbed by 100.05 points to hit 24,464.90 as of 9:42 am.
Chief Investment Strategist at Geojit Investments Limited, Dr. VK Vijayakumar, highlighted that the market’s short-term trajectory will be heavily influenced by news developments, swinging between optimism and apprehension.
Dr. Vijayakumar emphasized that ongoing talks between the US and Iran are fostering hopes of a peaceful resolution to the conflict. The stability in Brent crude prices at $95 and the decreasing spot prices of crude oil indicate market confidence in a swift resolution. However, any prolonged conflict could lead to a spike in crude oil prices, impacting stock markets negatively.
Following the market opening, Asian Paints Ltd led the gainers on the Sensex, rising by 1.65%, trailed by Axis Bank Ltd with a 1.54% increase. Adani Ports and Special Economic Zone Ltd saw a 1.38% uptick, while Eternal Ltd and Bajaj Finance Ltd also opened higher, gaining 1.37% and 1.12% respectively.
Conversely, Infosys Ltd witnessed the most significant decline, dropping by 0.12%. UltraTech Cement Ltd slipped by 0.10%, Tech Mahindra Ltd by 0.03%, and Reliance Industries Ltd by 0.01% in early trading.
Dr. Vijayakumar cautioned that the current high levels in the US market do not reflect concerns about a prolonged war. He underlined that an extended conflict could lead to slower growth and increased inflation, potentially pushing the market down.
In conclusion, Dr. Vijayakumar advised investors to remain composed and adhere to disciplined investment practices during times of uncertainty. He suggested that fundamentally solid stocks, trading at fair values, present opportunities for long-term accumulation amid market volatility and fear.
(Note: The opinions expressed in this article are solely those of the experts and do not represent the views of the India Today Group. It is recommended to consult with a qualified financial advisor before making investment decisions.)
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