Nifty down 0.18%, Sensex falls 0.80% amid market volatility and election uncertainty

NSE Nifty was down by 0.18 per cent or 39.65 points to 22,364, while the BSE sensex was at 72,085 down by 0.80 per cent or 578 points. A total of 3,192 stocks were actively traded, 2,015 advanced, while 1,049 declined and 128 stocks remained unchanged where 105 stocks hit a 52 week high and 17 stocks hit a 52 week low at 9.30 am on the BSE.

Vikas Jain, Senior Research Analyst at Reliance Securities, said, “Expect intra-day volatility to continue. Short covering may not be ruled out as foreigners most short on India stocks since 2012 on poll jitters. Technically, Nifty took support at 100 and momentum indicator RSI has given bullish cross over which may support the ongoing up move.

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Impressive domestic quarterly results, record intraday high and global market on rate cut hope by US Fed, improving voting percentage in the general election, both IMD and SKYMET predicated monsoon to arrive in Kerala ahead of schedule and falling FIIs selling pressure, may open domestic market on a positive note. Any sharp decline will be a good buying opportunity in the market on hope of short covering in the market due to 2-week left for the outcome of general election results.

Moreover, foreigners were most short on Indian stocks since the last 2 weeks ahead of the general election results outcome to be announced on 4th June. Among the global markets, Asia, US and European markets ended on a marginally lower from the record high on account of profit booking and hawkish commentary by US Fed officials.

Defence stocks will be positive after Hindustan Aeronautics reported strong Q4 results, Auto stocks may be positive after M&M announced impressive Q4 results. Metal stocks may be positive as copper price surged to 2-year high on LME.

Gold wavered Thursday as traders digested slowing US inflation data that raises the possibility that the Federal Reserve will cut interest rates as soon as September. Gold is trading flat at $2380/ounce.

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Major gainers on the NSE at 9.30 am include M&M (6.12%), ONGC (1.76%), Grasim Industries (1.39%), Tata Motors (1.39%), Tata Steel (1.05%). Major losers include SBI Life Insurance (-1.11%), Adani Ports (-1.09%), Sun Pharma (-0.99%), Axis Bank (-0.96%), Nestle India (-0.89%).

BSE Smallcap was up by 0.52 per cent and Midcap up by 0.54 per cent.

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