Stock market today: Nifty50 opens above 24,950; BSE Sensex up over 300 points on hopes of Trump-Modi talks

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened in green on Wednesday on positive sentiment around India-US trade deal talks. While Nifty50 was near the 25,000 mark, BSE Sensex was up over 300 points.

At 9:16 AM, Nifty50 was trading at 24,974.25, up 106 points or 0.42%. BSE Sensex was at 81,443.88, up 343 points or 0.42%.Renewed momentum on India-US trade deal talks with US President Donald Trump and Prime Minister Narendra Modi signaling talks is likely to be positive for the markets.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “A major positive for the market today comes from President Trump’s initiative to improve India-US relations and PM Modi’s positive response to the same.

However, from past experience the market should judge President Trump by his actions and not words. Investors should understand that the major challenge that the market is facing now is the high valuations, particularly in the broader market, which will constrain any potential rally.

India is hugely underperforming other markets now.” “For instance, while Hang Seng and Kospi delivered 51 % and 31% returns during the last one year, Nifty delivered -0.69 % return: huge underperformance.

Massive sustained selling by FIIs triggered by high Indian valuations is the principal reason for this underperformance. FIIs who sold in India and moved money to other markets have gained. Therefore, they might do it again. A change in this trend will happen when indications of a recovery in earnings emerge.

"The three major US indices reached record closing highs on Tuesday, supported by UnitedHealth's strong performance and revised payroll data, strengthening expectations for upcoming Federal Reserve rate cuts.Major Asian indices showed varied movements Wednesday following S&P 500's record performance, driven by anticipated Federal Reserve rate cuts amidst employment concerns.Crude oil prices increased on Wednesday following Israeli strikes on Hamas leaders in Qatar and US President Donald Trump's appeal to European nations to levy tariffs on Russian oil purchasers. However, gains remained limited due to subdued market conditions.On Tuesday, foreign portfolio investors made net purchases of Rs 2,050 crore in shares. Domestic institutional investors were also net buyers, investing Rs 83 crore.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)