Market selling pressure continues, with Nifty-Sensex opening lower than usual
May 13, Mumbai (Maharashtra) [India]: Amid investor apprehension about the approaching parliamentary elections in India, the stock markets began the new week poorly.
The Sensex opened down by 303 points at 72,365, while the Nifty 50 index fell by 61 points to 21,983.
Of the Nifty 50 equities, just 11 had gains in the first trading day, while 38 saw decreases. Notably, Tata Motors, Hero MotoCorp, and Eicher Motors were on the list of top losers, while Cipla, Sun Pharma, Britannia, HDFC Life, and ITC were among the top gainers.
“The fourth phase of the elections is being held today, marking the halfway point of the 2024 election season. We won’t know with certainty the results of the 2024 elections for the next twenty-three days until Wednesday afternoon/evening on June 4. For the next three weeks, expect markets to remain unsettled, according to banking and market expert Ajay Bagga.
The fourth quarter earnings announcements, which started in the second week of April, will also be made this week. The three main firms expected to release their financial results today are Jindal Steel, Zomato, and DLF.
“Investors are keeping a careful eye on remarks made by US authorities on interest rates, and the April inflation report is anticipated to be a big mover for trade. Furthermore, in light of geopolitical events, commodities like gold and oil are of particular interest, according to Varun Aggarwal, MD of Profit Idea.
“More research suggests that the short-term trend is still negative, with important support levels between 21,900 and 21,850,” he said. In the short run, there may be a little increase in price, but ultimately, the market may break through the current support levels and decline much further.
Due to indications of laxity in China and reports that the US intended to increase tariffs on some Chinese exports, Asian equities opened down globally. Market mood is being impacted by worries about inflation and geopolitical concerns, such as the Gaza war and developments in the dispute between Russia and Ukraine.
The key indexes ended the day higher on Friday. The Nifty 50 finished the day 97.70 points higher at 22,055.20, while the Sensex gained 260.30 points to reach 72,664.47.
Amidst the impending elections, foreign portfolio investors (FPIs) are selling aggressively in Indian markets; according to statistics from National Securities Depository Limited, investors withdrew a stunning Rs 17,082 crore in May.
With foreign institutional investors (FIIs) offloading a much larger amount of Rs 24,975 crore in the cash market, the selling pressure in the market is intensifying.
This month has seen a noticeable increase in the institutional activity disparity, with domestic institutional investors (DIIs) eagerly purchasing equities while FIIs have been steadily selling them.
Throughout the month, FIIs have sold equities totaling Rs 24,975 crore, while DIIs have bought stocks totaling Rs 19,410 crore.
