Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices rallied on Wednesday. While Nifty50 went above 24,900, BSE Sensex surged 800 points. At 10:40 AM, Nifty50 was trading at 24,937.70, up 253.80 points or 1.03%.BSE Sensex was at 81,989.69, up 803 points or 0.99%.Market experts anticipate sideways movement whilst following international developments, particularly US trade negotiations with India and China.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Spike in uncertainty and risk is impacting the market rather unexpectedly. Yesterday’s FII sell figure of Rs 10016 crores is a major reversal of their big buying in May and if this persists it has the potential to impact the market. What caused this sudden reversal in FII activity? A combination of many factors may be responsible: credit rating downgrade of US sovereign debt and the consequent spike in US bond yields, spike in Japanese Govt Bond yields, rising COVID cases in some parts of India and reports of a possible Israel attack on Iran are doing the rounds.Investors can wait and watch for the events to unfold.”“The 30-year JGB yield spiking to 3.14 % in the backdrop of the US 30-year yield spiking to 5% couple of days back sends a feeling of disquiet in financial markets. This may not create any near-term impact but is bound to have some medium to long-term consequences. Investors have to exercise caution.”US stocks declined on Tuesday, ending the S&P 500’s six-session winning streak, affected by climbing Treasury yields and concerns about US sovereign debt.Oil prices increased following CNN’s report about US intelligence indicating Israeli preparations for potential strikes on Iranian nuclear facilities. Asian equities showed positive movement on Wednesday.Oil prices surged over 1% on Wednesday following reports of Israel’s planned strike on Iranian nuclear facilities, triggering concerns about potential supply disruptions in the crucial Middle Eastern production region.Gold prices increased on Wednesday as the dollar declined to a two-week low, with investors seeking safe-haven assets amid US fiscal uncertainty during Congressional discussions on comprehensive tax legislation.Foreign portfolio investors recorded net sales of Rs 10,016 crore on Tuesday, whilst domestic institutional investors were net purchasers at Rs 6,738 crore.FII positions in futures market expanded from a net short of Rs 23,498 crore on Monday to Rs 38,748 crore.
