A day after the announcement of Lok Sabha elections, domestic stock market indices Sensex and Nifty, which opened nearly 1 percent higher on Wednesday (May 5), gained in morning trade.
At 11:30 am, the Sensex rose 2.46% or 1,772.04 points to 73,851.09. The index opened at 73,027.88, up 1.32% compared to its previous close of 72,079.05.
After opening with a gain of 243.85 points or 1.11%, the broader Nifty also jumped 2.56% or 560.5 points to hit an intraday high of 22,445.
On Wednesday, the Sensex closed 4,389.73 points or 5.74% lower at 72,079.05, and the Nifty 50 fell 1,379.4 points or 5.93% to close at 21,884.5 as the Bharatiya Janata Party (BJP) failed to win majority in general electiom. The party secured only 240 seats, much less than market expectations.
“It will take some time for the market to understand the unpredicted election results. Immovability will return to the market soon but instability will continue until there is clarity on the cabinet and key portfolios. The market is unlikely to see a sharp rebound in the near term, but regional priorities may change,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
There was huge volatility in the market; Sensex swung 1,971 points and Nifty 653 points. India VIX, the volatility index, which surged 51 per cent to 31.71 during intraday trades on Tuesday before closing at 26.75, further eased to 19.45, indicating low volatility in the near term.
Nifty PSE and Nifty CPSE, which had fallen 16.38% and 15.04% respectively on Tuesday, recovered losses and were down 0.67% and 0.55% respectively.
