Sensex and Nifty opened at all-time highs: The Sensex and Nifty domestic stock market indices began Monday at all-time highs, driven by increased inflows from foreign institutional investors (FPIs) and confidence regarding the results of the impending general elections.
After closing at 75,410.39 the previous day, the BSE’s 30-share Sensex started at an all-time high of 75,655.46, up 245.07, or 0.32 percent. The whole Nifty 50 opened at a record high of 23,038.95 after rising 81.85 points, or 0.36 percent.
According to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd., “confidence among Nifty buyers remains high, bolstered by investor optimism about the general elections and a drop in oil prices to $77 a barrel,” even though Wall Street was closed on Monday for Memorial Day.
The six major catalysts that could create volatility this week for Nifty traders are the exit polls on June 1, the May F&O expiry on May 30, the US GDP on May 30, India’s GDP on May 31, the US PCE Inflation on May 31, and the May car sales report on June 1.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “another positive for the market is that the FII selling which weighed on the markets this month has declined sharply and FIIs even turned big buyers on Thursday (May 23).”
In April, the FII selling started off slowly but quickly grew into a deluge in May. FIIs sold equity for Rs 22,046 crores through May 24, according to NSDL data. At Rs 33,460 crore, FII sold a huge amount in the cash market.
Due to low voter turnout in the first three stages of the election, Chinese stocks underperformed, which contributed to the outflow of investors.
Once more, things are gradually shifting in the ruling regime’s favor. According to Vijayakumar, “the base case scenario seems to be a clear verdict in favor of BJP/NDA.”
FIIs are expected to purchase in India going forward as more election-related clarity becomes apparent since they cannot afford to miss the post-election results rally. He said that the rally might start before the election results are announced.
The Reserve Bank of India (RBI) paid the government a larger-than-expected dividend last week, causing the Sensex and the Nifty to soar to all-time highs. Investor mood was lifted by the massive surplus transfer of Rs 2.11 lakh crore as, according to market experts, it will assist the government in keeping the fiscal deficit for FY2025 within the range of 0.2–0.4%.
The NSE stocks that increased the highest on Monday were NTPC Ltd., Hindalco Industries, Adani Ports, Divi’s Laboratories Ltd., and Tata Steel.
