Election effect: Sensex rises by 1 thousand points as FPI selling continues

MUMBAI: As volatility continued on Dalal Street, the Sensex surged nearly 1,000 points on Monday, while the volatility gauge India VIX hit 21.5, its highest level in several months. Voting uncertainties and selling foreign funds are weighing market sentimentdealers and analysts said.
The Sensex started the new trading week on a weak note and was nearly 200 points below Friday's closing level. By mid-session it slipped to an intra-day low of 71,866 points, then rose to an intra-day high of 71,864 points. Closed at 72,776, up 112 points.
Nifty closed at 22,104, up 49 points on NSE.
As seen in the last few weeks, foreign portfolio investors remained net sellers while domestic institutional investors remained net buyers. At the end of the day's trading, DIIs were net buyers worth Rs 3,563 crore FPI A net outflow of Rs 4,499 crore was recorded, BSE data showed. CDSL and BSE data showed that foreign funds have made a net sale of shares worth about Rs 22,800 crore so far in May. In contrast, DIIs bought net stocks worth about Rs 23,000 crore, BSE data showed.
Fund managers and institutional dealers said markets in China and Hong Kong, which were underperforming for a long time, are showing some smart moves recently, with some foreign fund managers pulling money out of India and deploying money in those markets. Have been.

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Volatility is another concern for domestic investors. The 998-point intra-day swing in the Sensex was reflected in the India VIX, which hit an intra-day high of 21.5, not seen since September 2022.
Brokers believe there has been relatively low turnout at the moment Lok Sabha Elections There is cause for concern that there may be some unexpected consequences. When the first phase of voting began on April 19, most people on Dalal Street were predicting a landslide victory for the ruling NDA. “Going forward, the market will take cues from the voting percentage data of the fourth phase Lok Sabha Survey), which has been a major concern so far,” said Siddharth Khemka, Head – Retail Research. Motilal Oswal Financial Services,
In Monday's session, smart recovery in Sensex was led by strong buying in HDFC Bank, ICICI Bank and TCS, while strong selling in stocks like Tata Motors, Bharti Airtel and SBI limited the index's gains for the day.
Out of 30 Sensex stocks, 16 stocks closed with gains, while 14 stocks closed in the red. In the broader market, losers outnumbered winners as 2,254 shares fell while 1,707 closed higher, BSE data showed.

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