05 June,2024 02:02 PM IST | Mumbai | mid-day online correspondent
Representative image
The benchmark equity indices Sensex and Nifty recovered sharply on Wednesday, following a significant fall in the previous session due to value buying at lower levels. The 30-share BSE Sensex rose 1,772.04 points to 73,851.09 during afternoon trading. Similarly, the NSE Nifty gained 560.5 points to 22,445, reported PTI.
Per the report, despite the National Democratic Alliance (NDA) handily exceeding the majority mark of 272 in the 543-member Lok Sabha, the BJP fell short of the majority required for the first time since 2014, forcing them to rely on partners to form a government. The Election Commission has announced the results for all 543 constituencies, with the BJP winning 240 and the Congress securing 99.
Motilal Oswal Research stated that, despite the reduced majority, Modi 2.0's policy agenda is projected to continue with some changes, with a focus on investment-led growth, infrastructure, and manufacturing. Some populist measures are also expected to address rural concerns and boost sentiment.
The top gainers among the 30 Sensex businesses were Mahindra & Mahindra, Hindustan Unilever, Asian Paints, IndusInd Bank, Kotak Mahindra Bank, and Nestle. Larsen & Toubro, Power Grid, and State Bank of India were the laggards, PTI report added.
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V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, predicted that the market will take some time to stabilise following the unexpected election results. He noted that while volatility will continue until the cabinet composition was determined, the current market fall has reduced unsustainable valuations, potentially encouraging institutional buying once clarity is established.
Seoul led Asian markets up, but Tokyo, Shanghai, and Hong Kong fell. On Tuesday, the US markets ended positively. Brent crude, the global oil benchmark, fell slightly by 0.04 percent to USD 77.49 per barrel. Foreign institutional investors (FIIs) sold securities worth Rs 12,436.22 crore on Tuesday, according to exchange data.
On Tuesday, the markets experienced their worst trading day in four years as the BJP fell short of the majority. The BSE Sensex plummeted by 4,389.73 points or 5.74 per cent to settle at a more than two-month low of 72,079.05. During the day, it dropped by 6,234.35 points or 8.15 per cent to a nearly five-month low of 70,234.43. The NSE Nifty also tumbled by 1,982.45 points or 8.52 per cent to 21,281.45, ending the day at 21,884.50, a sharp decline of 1,379.40 points or 5.93 per cent.
With PTI inputs
