27 May
SUNDAR SETHURAMAN
The domestic markets hit new intraday highs on Monday but witnessed another turbulent trading session to end 0.8 per cent lower from the highest points. The India Vix, a gauge for near-term volatility, surged nearly 7 per cent to end at 23.2, the highest in almost two years. After climbing to 76,010, the Sensex finished at 75,391, down 20 points, or 0.03 per cent, over the previous day’s close.
The Nifty hit a new high of 23,111 but ended the session at 22,933, with a drop of 24 points, or 0.1 per cent. The markets have rebounded sharply from the month’s low amid growing optimism that the incumbent Bharatiya Janata Party (BJP) government will win a third time. However, selling is emerging at higher levels with some investors looking
to take some profits off the table due to
nervousness around the margin of victory
for the BJP.
Market players said stock prices at current levels were pricing in 300-plus seats
for the BJP and a lower tally could disappoint the Street. The lower turnout in the
elections had raised concerns about how
voter fatigue may impact the final outcome on June 4. Foreign portfolio investors (FPIs) sold shares worth %541 crore,
while domestic institutional investors
(DIIs) pumped in %923 crore on Monday.
So far this month, FPIs have yanked out
323,000 crore from domestic stocks, stoking volatility in the market.
However, despite the sharp FPI selloff,
Indian equities have been resilient amid
strong buying by domestic institutional
investors, and the recent surge in banking
stocks after the Reserve Bank of India (RBI)
transferred 2.11 trillion dividend to the
government for 2023-24, surpassing analysts' and the government's expectations
of%1.02 trillion.
0 Comments