‘Com­mit­ted to NDA Win’, Mkt Ner­vous Ahead of Re­sults

The Economic Times - - Front Page - OUR BUREAU

The stock mar­kets on Thurs­day gave lit­tle away to the thou­sands of in­vestors and traders who were watch­ing trad­ing screens closely for hints on the Dalal Street’s mood ahead of the cru­cial elec­tion re­sults on Fri­day. Bench­mark in­dices swung be­tween gains and losses for most of the trad­ing day be­fore end­ing higher over Wed­nes­day’s close as con­fused mar­ket par­tic­i­pants chose to stay on the side­lines or cut a por­tion of their bets.

Vo­latil­ity In­dex (Vix), a mea­sure of traders’ per­cep­tion of near-term risks in the mar­ket, shot up 13% on Thurs­day, re­vers­ing the pre­vi­ous day’s de­clines. The re­bound in the Vix un­der­scores the ner­vous­ness in the mar­ket.

“In­vestors are jit­tery be­cause the mar­ket has com­mit­ted it­self to the NDA (Na­tional Demo­cratic Al­liance) get­ting 270-280 seats,” said V Bala­sub­ra­ma­nian, se­nior fund man­ager, IDBI Mu­tual Fund. The NDA is led by the BJP. Bro­kers said a ma­jor­ity of the trad­ing on Thurs­day was re­stricted to spe­cific stocks or sec­tors as few wanted to cre­ate fresh po­si­tions ahead of the event. BSE’s Sen­sex rose 90.48 points or 0.38% to close at 23905.60. NSE’s Nifty gained 14 points or 0.20% to close at 7123.15.

For­eign in­sti­tu­tional in­vestors (FIIs) net bought shares worth .` 935 crore, while their do­mes­tic coun­ter­parts net sold to the tune of .` 385.40 crore. Bro­kers said the in­de­ci­sive­ness in the mar­ket could con­tinue till Fri­day noon when in­vestors would get a bet­ter idea of the elec­tion re­sults. With Se­cu­ri­ties and Ex­change Board of In­dia (Sebi) turn­ing down bro­kers’ re­quest to ex­tend trade tim­ings on Fri­day or keep mar­kets open on Satur­day, most of the ac­tion is likely to hap­pen in the sec­ond half of trad­ing on Fri­day. The more savvy in­vestors would be tuned into ac­tion in Nifty fu­tures on Sin­ga­pore Ex­change (SGX), which is open for 16 hours. On Satur­day and Sun­day, traders would watch moves in Sen­sex fu­tures on Dubai Gold and Com­modi­ties Ex­change for cues on what to ex­pect on Mon­day.

FIIs net bought shares worth 935 cr, while do­mes­tic coun­ter­parts net sold to the tune of 385.4 cr

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