Benchmark stock market indices opened higher on Tuesday, as investors reacted to reports of peace talks between Iran and the US. Q4 results have also started coming in, with investors tracking them closely.
The S&P BSE added 370.07 points to 78,890.37, while the NSE Nifty50 gained 100.05 points to 24,464.90 as of 9:42 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that in the near-term the market will continue to be news-driven, oscillating between hope and fear.
“Reports of second round of talks between US and Iran are keeping hopes of resolution to the conflict alive. Brent crude at $95 and declining spot prices of crude reflect market confidence that the conflict may not last long. But if it does, crude price will again spike impacting stock markets,” he added.
After the opening bell, Asian Paints Ltd led the Sensex gainers, rising 1.65%. It was followed by Axis Bank Ltd, which gained 1.54%. Adani Ports and Special Economic Zone Ltd moved up 1.38%, while Eternal Ltd added 1.37%. Bajaj Finance Ltd also opened higher, rising 1.12%.
Infosys Ltd saw the sharpest fall, slipping 0.12%. UltraTech Cement Ltd declined 0.10%, Tech Mahindra Ltd was down 0.03%, and Reliance Industries Ltd edged lower by 0.01% in early trade.
“The mother market US cruising at high levels do not reflect any concern of prolonged war. A prolonged war means slower growth and higher inflation for long. Such a scenario will push the market down,” said Vijaykumar.
“In brief, uncertainty looms large. During such periods of uncertainty, the only thing investors can do is to remain calm and exercise utmost discipline in investing. Fairly-valued fundamentally sound stocks will be available at reasonable prices during this period of uncertainty and fear. Such stocks can be accumulated in a calibrated manner for the long-term,” he added.
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