Share Market Touches New High Ahead Of Election

For the first time ever, the market cap of listed companies touched a new high of USD 5 trillion before the elections in intraday trade.  It took merely 6 months to reach this milestone of USD 5 trillion in May from USD 4 trillion in November 2023. As per Fortune India, this growth is driven majorly by pre-election rallies and the strong financial standing of the corporate sector in India. 

However, according to various market analysts, the volatility tends to remain high amid investors’ sentiment over general election results.  Rajesh Bhosale, Technical Analyst at Angel One, said, “With the end of the election phase approaching and the verdict nearing, volatility is likely to stay high. Therefore, traders should avoid complacent bets and prioritise regularly booking profits. Additionally, monitoring global developments is crucial, as any issues could potentially impact the recent run.

In a volatile trading session, the BSE Sensex fell by 52.63 points, or 0.07%, closing at 73,953. Meanwhile, the NSE Nifty rose by 27.05 points, or 0.12%, ending the day at 22,529, 250 points away from its all-time high. During the session, the Sensex reached an intraday high of 74,189 and an intraday low of 73,762. In contrast, the NSE Nifty recorded an intraday high of 22,591 and an intraday low of 22,404. The market capitalisation of BSE-listed companies was $4.97 trillion at the end of the day’s trading and $4.93 trillion for companies listed on NSE.

Rupak De, Senior Technical Analyst at LKP Securities, mentioned, “Strong put writing at 22,400, and 22,500 might provide support to the Nifty. On the higher end, a decisive move above 22,600 might induce a rally towards 22,800 in the near term. Till then, the index might continue consolidating as long as it remains within the range of 22,400 to 22,600.

Sectors Wise Analysis

The stock market charts showed a 4% gain, with the PSU index following closely with a 2% rise. Conversely, the FMCG and IT indices were the worst performers, registering losses of 0.51% and 0.46%, respectively.
Among individual stocks, the top gainers were Tata Steel, JSW Steel, Power Grid Corporation of India, Tech Mahindra, and NTPC. Whereas, notable losers included Nestle India, Maruti Suzuki India, IndusInd Bank, ICICI Bank, and Hindustan Unilever.

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