Indian stock markets showed a slight gain on Friday, with the Nifty 50 index rising by 0.44 percent and the Sensex gaining 260.3 points. While sectors like IT, Realty, PSU Bank, and Bank recorded losses, Metal, Oil & Gas, FMCG, and Auto sectors led the upward trend. Market expert Ajay Bagga described the week as “Jittery and Volatile,” with foreign investors causing large outflows. He predicted that the markets will continue to be shaky until early June, when exit polls are announced.
In the Nifty 50 list, companies like BPCL, Power Grid, NTPC, Hero Motocorp, and Eicher Motors emerged as top gainers, while TCS, Cipla, LTIM, Kotak Bank, and Infosys were among the top losers. There were a total of 2,703 stocks traded on the NSE, with more closing in the green than in the red. Market expert Vinod Nair noted that Indian markets remained positive, but a trend of sell-on rally was emerging due to election jitters and domestic premium valuations. Continued weakness in financials and regulatory actions by the RBI were also contributing to the negative sentiment.
The broader market indices, Nifty Midcap 50 and Nifty Midcap Select, performed well during Friday’s session, with gains of more than 1 percent. Foreign portfolio investors (FPIs) have been net sellers in Indian stocks recently, with NSDL data showing significant sales in April and May. In the commodities market, oil prices extended gains for a third day, supported by technical levels, and gold prices also rose. WTI Crude oil futures rose due to optimism in Chinese and US demand, while US weekly jobless claims increased, leading to expectations of Federal Reserve interest rate cuts.
Overall, the Indian stock market is facing volatility and uncertainty due to foreign outflows, election jitters, and contraction in financials. While some sectors are performing well, others are struggling, leading to a mixed market sentiment. Investors are advised to brace themselves for further volatility in the coming weeks before the situations stabilize post-elections. The commodities market is also reacting to global economic factors, with oil and gold prices experiencing fluctuations. Financial experts are closely monitoring market trends and advising caution in investment decisions during this uncertain period.
