Sensex rises 2.46% in morning session, Nifty gains 560 points: The domestic stock market indices, Sensex and Nifty, which opened on Wednesday, May 5, over 1% higher, continued their advances in the morning session, one day after the Lok Sabha elections were announced.
At 11:30 am, the Sensex increased by 2.46 percent, or 1,772.04 points, to 73,851.09. At the opening, the index was up 1.32 percent, or 73,027.88, over the previous finish of 72,079.05.
After beginning with a gap up of 243.85 points, or 1.11 percent, the wider Nifty also surged 2.56%, or 560.5 points, to an intraday high of 22,445.
Following the Bharatiya Janata Party’s (BJP) failure to achieve a majority in the general elections on Wednesday, the Nifty 50 plummeted 1,379.4 points, or 5.93 per cent, to close at 21,884.5 and the Sensex lost 4,389.73 points, or 5.74 points, to end at 72,079.05. Only 240 seats were won by the party, many fewer than predicted by the market.
The surprise election results will take some time for the market to process. The market will quickly stabilize, but volatility will persist until the cabinet and the major portfolios are clear. Sectoral preferences may shift, but a significant market rebound is unlikely in the foreseeable future, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
With the Sensex moving 1,971 points and the Nifty 653 points, the market was very volatile. The volatility index, or India VIX, fell to 19.45 on Tuesday, indicating reduced volatility in the immediate future. On Tuesday, it had surged 51% to 31.71 during intraday transactions and closed at 26.75.
Together with coalition allies, the National Democratic Alliance (NDA) will form the Modi 3.0 government. The market will probably become more confident in the stability of both the policies and the politics as a result. Therefore, a positive rebound is anticipated going forward, according to a research from Axis Securities.
Following their Tuesday declines of 16.38% and 15.048%, respectively, Nifty PSE and Nifty CPSE recovered, closing down 0.678% and 0.558%, respectively.
The NSE companies that made the most gains were Asian Paints (4.71%), Hero MotoCorp (6.46%), Mahindra & Mahindra (6.01%), Hindustan Unilever (6.06%), and Tata Consumer Products (6.30%).
