Market Snaps 3-Day Winning Streak Amid Election Uncertainty: Sensex Down 117 Points, Nifty At 22,200

Snapping a three-day winning streak, the Indian stock market on Wednesday declined even as it witnessed a sideways movement throughout the day as the emotions of investors were impacted by the election-led jitters. The BSE Sensex on Wednesday dropped 117.58 points to close at 72,987.03, while the Nifty ended the day lower by 17.3 points at 22,200.55.

Among the Sensex shares, 16 out of the total 30 shares closed in red. Asian Paint, Tata Motors, HDFC Bank, JSW Steel and Sun Pharma were the biggest laggards. However, 14 shares ended the day in green, among the top gainers were Bharti Airtel, Power Grid, NTPC, Mahindra & Mahindra, and HCL Technologies.

Vinod Nair, head of research at Geojit Financial Services, said, “The market witnessed a sideways movement throughout the day as the emotions of investors were impacted by the election-led jitters. FIIs continued to remain in the selling mode. However, domestic investors were largely concentrated on stock-specific picks.”

The positive results from the capital goods sector and robust growth outlook gained investors’ attention and led the segment to outperform. A drop in US 10-year yield ahead of the release of sensitive CPI data from the US will be watched carefully by the market to gain insights on rates, he added.

On the Nifty movement, Rupak De, senior technical analyst at LKP Securities, said, “The Nifty largely traded sideways as the index failed to generate any significant directional breakout. Bulls struggled to push Nifty above the 22250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22250.”

A decisive move beyond this level could potentially propel Nifty towards 22600 and beyond. Conversely, a failure to sustain above 22200 might invite selling pressure in the market, De added.

On the Bank Nifty, Kunal Shah, senior technical and derivative analyst at LKP Securities, said, “The Bank Nifty index experienced sideways trading during the weekly expiry day, encountering resistance at the 48000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48500. On the downside, support is positioned at 47200, presenting favorable buying opportunities on dips toward this level.”

In the morning trade, the domestic equities market were up amid higher buying. The BSE Sensex opened over 100 points higher at Rs 73,210, while the NSE Nifty started the day above 22,250. The upward movement in the early trade was supported by gains in drugmaker Cipla following the promoter group’s stake sale plan, while lender Canara Bank jumped on its inclusion into a key MSCI index.

In the previous trading session on Tuesday, the domestic equities had gained for the third day in a row. The BSE Sensex on May 14 closed higher by 328.48 points to nearly 73,104.61, while the NSE Nifty ended the day above 22,200

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