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