Sensex, Nifty fall for 5th consecutive session: Here's why
What's the story
India's leading stock market indices, BSE Sensex and NSE Nifty 50, opened in the red for the fifth consecutive session today.
The Sensex dipped by 155 points or 0.2% to stand at 73,311.44, while the Nifty fell by 36 points or 0.2% to reach 22,267.
The broader market also reflected this trend with BSE Midcap decreasing by 0.2%. However, BSE Smallcap saw a slight increase of 0.3%.
Expert insight
Election results impact market performance
The ongoing general elections have significantly influenced the downward trend in the stock market.
Gaurang Shah, Senior Vice President at Geojit Financial Services, stated that "Markets are expected to remain choppy until election results are out."
He also suggested potential intraday fluctuations unless India VIX shows a decrease in volatility.
This insight underscores the close link between political events and market performance.
Market factors
Q4 earnings and election factors consolidate domestic markets
On May 7, the Sensex closed at a lower point of 73,511.85 (down by 383 points or 0.5%), and the Nifty fell to 22,301.50 (down by 141 points or 0.6%).
This decline was further exacerbated by less than stellar Q4 earnings which shook market confidence near record highs.
Despite encouraging global cues, domestic markets continued to consolidate due to factors such as low voter turnout in the ongoing elections and high valuations.
Support levels
On the downside, Nifty will find support at 22,100-22,000
"As long as the index (Nifty) remains below 22,400, short-term weakness will persist," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates.
"If the index can stay above 22,410, a relief rally to 22,500-22,600 cannot be ruled out," he said.
"On the downside, the index will find strong support at 22,100-22,000 levels," Yedve said in a note.