Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened flat in trade on Wednesday on weak global cues. While Nifty50 was above 26,000, BSE Sensex was near 85,100. At 9:16 AM, Nifty50 was trading at 26,010.65, down 22 points or 0.083%. BSE Sensex was at 85,116.06, down 22 points or 0.026%.Analysts believe that In the near term, major resistance for the Nifty is placed at 26,325. Until the index persists below this level, any bounce should be used for profit booking, they say.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Nifty’s correction of about 300 points from the record high can be seen as a correction driven by technical factors like rejig in the Bank Nifty and the concerns arising from the continued depreciation of the rupee. Rejig in the Bank Nifty and the consequent reduction in the weight of HDFC Bank and ICICI Bank are pure technical factors that have nothing to do with the fundamentals of these stocks. With improving credit growth in the economy and strong fundamentals of these banking majors, they will bounce back in due course. A real concern now, which has contributed to the slow drifting down of the market, is the continued depreciation in the rupee and fears of further depreciation since the RBI is not intervening to support the rupee. This concern is forcing the FIIs to sell despite the improving fundamentals of rising corporate earnings and strong rebound in GDP growth.” “The rupee depreciation will halt and even reverse when the India-US trade deal materialises. This is likely this month. A lot, however, will depend on the details of the tariffs to be imposed on India as part of the deal. The ideal strategy for investors in this period of uncertainty is to remain invested in high quality growth stocks in the large and midcap segments. Smallcaps, as a segment, continue to be overvalued and are, therefore, best avoided.”US equities finished higher, marking their sixth positive close in seven sessions during quiet trading on Tuesday. Technology shares led the advance amid strong expectations for Federal Reserve rate cuts next week.Asian stocks were flat on Wednesday, reflecting similar patterns on Wall Street, as investors sought new market drivers whilst cryptocurrency recovery lost momentum.Gold prices stayed flat following a 1% decline in the previous session, as rising equities and stable Treasury yields continued to affect the metal whilst traders awaited crucial US economic indicators for insights on potential rate reductions later this week.Foreign portfolio investors recorded net sales of Rs 3,642 crore on Tuesday. Domestic institutional investors registered net purchases of Rs 4,646 crore.(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)
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