Market volatility may decrease as election phases advance and investors realign their positions. At the same time, Foreign Institutional Investors (FIIs) are making substantial sales to avoid uncertainties related to the elections.
On 15 May, the BSE Sensex and NSE Nifty 50 opened higher supported by positive global market cues and expectation of important U.S. inflation numbers that might shape future Federal Reserve decisions.
Early Market Performance
Sensex was at 73,187 gaining 83 (0.1%) points by 9:21 AM whereas the Nifty 50 rose to 2752 adding about 35 points to reach 22 . The broader markets like BSE Midcap and BSE Smallcap were very strong with each giving returns of over one per cent respectively.Moreover, among the thirteen major sectoral indices advancing, there were twelve in green while only Nifty Auto was trading down by 0.1% among all sectors. The leading gains belonged to the PSU Bank Index with a gain of nearly two percent.
Notable Stock Movements
Cipla stock stood out from the rest after going up about 4.05% resulting from three block deals forming 2.04 crore shares which is equivalent to a 2.52% promoter’s stake reportedly sold off.The identity of buyers was undisclosed nevertheless; there was news regarding Coal India that gained 3% as well as JSW Steel which declined1.62%, amidst concerns about likely Chinese dumping due to US tariff increase.
Market Volatility Amid Election Anticipation
Dalal Street is also facing high fluctuations due to upcoming general elections results release.“Markets tend to be jittery ahead of significant events like general elections that could influence economic direction for years,” said Daljeet Singh Kohli, Head of Research & Strategy at Vasuki India Fund.
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Investment Trends
Foreign Institutional Investors (FIIs) remained cautious on election-related uncertainties and were seen selling off their holdings whilst Domestic Institutional Investors (DIIs) had taken this opportunity to keep accumulating such stocks.Daljeet said that following recent market corrections, valuation levels still remained high showing faith in Indian economic story.
Coming soon to a Market near you
General election and corporate earnings updates are among the things to expect from the market. For instance, Mankind Pharma, Jindal Stainless and Dixon Technologies were bearish while Power Finance Corp, Honeywell Automation and LIC Housing Finance were bullish for their upcoming financial results.
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Key Technical Indicators
Choice Broking’s Research Analyst Deven Mehta has given technical levels for Nifty 50 with major support around22 ,150 and resistance at 22 ,300 indicating some points where traders can look for possible reversals.
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