Domestic equity indices Sensex and Nifty opened at fresh all-time highs on Monday on expectations of general election results and increased inflows from foreign institutional investors (FPIs).
BSE’s 30-share Sensex opened today at an all-time high of 75,655.46, up 245.07 or 0.32 percent, compared to the previous close of 75,410.39. Similarly Nifty started crossing 23,000 points. The Nifty opened 50 points higher at 81.85 points, or 0.36 per cent, at a high of 23,038.95 points.
“Despite Wall Street being closed on Monday for Memorial Day, sentiment remains high among Nifty buyers, investor confidence on general elections and oil prices down to $77 a barrel,” said Prashant Thapse, senior vice-president (research) at Mehta Equities Ltd.
Nifty traders should brace for a week of potential volatility driven by six major catalysts: Exit Polls (June 1), May F&O Expiry (May 30), US GDP (May 30), India’s GDP (May 31), US PCE Inflation (May 31). ), and the May auto sales number (June 1), he said.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “Another positive aspect for the market is that the selling of FIs in the markets has come down sharply this month. And FIIs turned out to be big buyers on Thursday (May 23), he said.
The FII selling that started as a trickle in April turned into a deluge in May. According to NSDL data, FIIs sold shares worth Rs 22,046 crore till May 24. FII sales in the money market stood at Rs 33,460 crore.
The exodus was due to low turnout in the first three phases and the underperformance of Chinese stocks, as well as election-related jitters.
“The situation is slowly turning again in favor of the ruling regime. This situation appears to be a clear verdict in favor of the BJP/NDA,” said Vijayakumar.
Going forward, FIIs are likely to buy in India as there is clarity on the electoral arena and the post-election results rally cannot be missed. The rally may start even before the election results, he said.
On Monday, the top gainers on NSE stocks were Divis Laboratories Ltd, Adani Ports, Hindalco Industries, Tata Steel and NTPC Ltd.
