Nifty50 and BSE Sensex opened in red on Wednesday. However, the market shifted to the green territory. While Nifty50 was above 24,850, BSE Sensex was marginally up.
At 9:21 am, Nifty50 was trading at 24,857.80, up 32 points or 0.13%. BSE Sensex was at 81,596.74, up 45 points or 0.055%.
Market experts indicate that volatility is expected to persist short-term, as investors closely monitor international developments, trade talks, and upcoming corporate results.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, " The MPC is almost certain to cut policy rates by 25 bp in the June 6th policy meeting. Therefore, rate sensitives will be in focus in the coming days. Buy on dips is the ideal strategy in the present phase of market consolidation. BAT's decision to sell 2.3% stake in ITC will keep the stock subdued. This will provide opportunity for long-term investors to buy this fairly-valued bluechip."
" Positive cues from the US market, weak dollar and soft gold will provide a favourable macro construct for the equity market today. Large liquidity with the mutual funds and the trend of sustained SIP inflows would encourage fund managers to buy consistently. Tariff-related issues and President Trump's comments on a whole host of economic and non-economic issues would continue to weigh on markets.
On Tuesday, US markets rallied strongly following President Donald Trump's tariff relief announcement and unexpected positive consumer confidence data. Asian markets opened higher, following Wall Street's strongest performance in over two weeks, supported by improved US consumer confidence and global bond market gains.
Foreign Institutional Investors' position in the futures market showed an increase in net short positions from ₹51,312 crore on Monday to ₹67,419 crore on Tuesday.
Gold prices advanced on Wednesday due to a marginal decline in the dollar and reduced US bond yields. Investors remain watchful for the upcoming US core Personal Consumption Expenditures (PCE) price index report, which could guide interest rate decisions.
Foreign portfolio investors purchased shares worth ₹348.45 crore on Friday, whilst Domestic Institutional Investors (DIIs) acquired shares worth ₹10,104 crore.
