Investors on Edge as National Elections Approach: Stock Market Wavers Ahead of Results
As the nation gears up for next week’s national elections, investors are closely watching the stock market, which saw a mix of gains and losses on Friday. The domestic benchmark indices, the Nifty 50 and the Sensex, closed marginally higher but recorded their first weekly decrease in three.
The S&P BSE Sensex rose by 0.1% to 73,961 points, while the NSE Nifty 50 finished the day up 0.2% at 22,531 points. Both benchmarks had initially gone up as much as 0.7% in early trading before giving up some gains.
With today marking the end of India’s weeks-long election campaign and votes set to be tallied on June 4, investors are eagerly awaiting the exit polls that will forecast the results.
In addition to the election buzz, the government’s budget deficit for 2023–24 was reported to be 5.63% of GDP, slightly better than the 5.8% predicted in the Union Budget. The fiscal deficit stood at Rs 16.53 lakh crore.
Vinod Nair, Head of Research at Geojit Financial Services, noted that investors are adjusting their portfolios to align with strong sectors and stocks, with a focus on robust Q4 FY24 earnings and GDP growth. However, weak global cues and higher core inflation in the Eurozone are also impacting market sentiments.
Looking ahead, the short-term direction of the market will depend on the election results, as well as key economic indicators like the RBI policy, PMI data, and auto sales numbers.
For those looking to make strategic moves in the market, analyst Sumeet Bagadia recommended three stocks to consider buying on Monday: Adani Ports and Special Economic Zone Ltd, Power Grid Corporation of India Ltd, and Tata Steel Ltd.
Each stock was analyzed based on technical indicators and potential price targets, with recommendations on entry points and stop-loss levels to manage risk effectively.
As investors navigate the uncertainty surrounding the elections and global economic conditions, staying informed and making well-informed investment decisions will be crucial in the days ahead.
