Sensex and Nifty Rebound Strongly After Previous Decline
Mumbai: The benchmark equity indices, Sensex and Nifty, opened Wednesday’s trading session on a positive note, bouncing back from significant losses in the previous session. The 30-share BSE Sensex surged 948.83 points to 73,027.88 early in the session, while the NSE Nifty climbed 247.1 points to 22,131.60.
Despite the NDA holding a comfortable majority in the 543-member Lok Sabha, the BJP has fallen short of the magic number for the first time since 2014, relying heavily on coalition partners for government formation.
According to a report by Motilal Oswal Research, “Despite the reduced majority, we expect Modi 2.0’s policy agenda to continue, focusing on investment-led growth, infrastructure development, manufacturing, with adjustments and potential populist measures to address rural concerns.”
Among the top gainers among the Sensex companies were Hindustan Unilever, Nestle, Asian Paints, HCL Technologies, HDFC Bank, Kotak Mahindra Bank, and ITC. Conversely, Larsen & Toubro, Power Grid, NTPC, and State Bank of India were among the laggards.
“The market is expected to stabilize soon, but volatility may persist until clarity emerges on cabinet formation and key portfolios,” noted V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In Asian markets, Seoul and Hong Kong saw gains, while Tokyo and Shanghai traded lower. US markets closed positively on Tuesday. Brent crude oil prices dipped slightly to USD 77.49 per barrel.
Foreign Institutional Investors (FIIs) sold equities worth Rs 12,436.22 crore on Tuesday, contributing to the market volatility amidst the unexpected election outcomes.
Tuesday marked one of the worst trading days in four years for the markets, with the Sensex plummeting 4,389.73 points to settle at a more than two-month low of 72,079.05. The Nifty also recorded a significant decline, ending the day sharply lower at 21,884.50.
