US-Russia talks: Indian markets have been fluctuating in today’s session, swinging between losses and gains. The Nifty is trading below the 24,600 level, slipping by nearly 20 points, while the Sensex is down around 100 points, approaching the 80,500 mark. Overall, the markets are witnessing choppy trade.
As of 10:03 am, the BSE Sensex gained 356 points, or 0.44 per cent, to reach 80,960, while the Nifty 50 advanced 110 points, or 0.45 per cent, to 24,694.
Market sentiment improved after news broke that US President Donald Trump had prolonged the tariff truce with China by an additional 90 days, delaying the enforcement of increased tariffs on Chinese imports.
On Monday, Nifty had a flat opening but bounced back strongly, surging over 230 points to finish close to the previous day’s high. The Bank Nifty too witnessed a sharp intraday rebound of around 580 points, forming a robust bullish candle that signaled sustained buying interest at lower levels.
“The market will be focused on the outcome of the Trump-Putin talks scheduled for August 7th. If the talks result in a breakthrough and a possible end to the Russia-Ukraine war, there will be a dramatic change in market sentiments. The 25% penal tariffs imposed on India for buying oil from Russia will become irrelevant. But since Trump has a bloated ego and he is unhappy with India’s response, we don’t know how things are going to pan out. Extension of the China-US talks for another 90 days is a reflection of the Chinese leverage in talks, particularly the leverage arising out of China’s dominant position in rare earth magnet market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
What should stock market investors do?
According to Vijaykumar, investors should be guarded against the elevated valuations in the broader market, particularly in smallcaps.
“ The robust equity fund flows of ₹42702 crores in July into mutual funds reflect the optimism of retail investors. This huge liquidity can support the market despite the geopolitical headwinds. Investors should focus on high quality fairly-valued growth stocks in financials, telecom and capital goods. Midcap IT offers value buying opportunities,” he added.
On the other hand, Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, advised traders to to maintain a cautious “wait-and-watch” approach, particularly when dealing with leveraged positions.
“ Given the current environment of uncertainty and elevated volatility, traders are advised to maintain a cautious “wait-and-watch” approach, particularly when dealing with leveraged positions. Booking partial profits on rallies and employing tight trailing stop-losses remain prudent strategies to manage risk. Fresh long positions should be considered only if the Nifty sustains above the 24,750 level. Overall, the market outlook remains cautiously bullish, with close monitoring of key breakout levels and global developments recommended,” Shinde said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
