With the BJP-led NDA getting trounced in Bihar assembly polls, the stock market is expected to turn volatile, with experts anticipating a knee-jerk downward move on Monday.
The BSE Sensex and NSE Nifty are likely to open in red on Monday tracking SGX Nifty and mixed Asian markets. With the BJP-led NDA getting trounced in Bihar assembly polls, the stock market is expected to turn volatile, with experts anticipating a knee-jerk downward move on Monday.
At 8.31 am, SGX Nifty was down 148 points, or 1.89 per cent at 7,828.
“The market was building on this outcome over the week gone by, with Nifty slipping below 8,000. We could see a knee-jerk reaction on Monday and then a phase of recovery and consolidation over the Diwali-shortened week,” said, K Sandeep Nayak, chief executive officer, Centrum Broking.
Karthik Rangappa, vice president, research & education, Zerodha, said, “We expect the market to stay weak for few more trading sessions. Market’s Friday close of below 8,000 and the election outcome on Sunday are both weighing down on the markets. Long term investors should watch out for stock specific valuations, as they may get attractive if the weakness in the markets persists.”
Asian stocks were mixed, with Japanese and Chinese shares up, while the dollar stood at a 7-month high against peers on Monday after robust US jobs data bolstered expectations of a the Federal Reserve interest rate hike in December.
Data on Friday showed nonfarm payrolls increased 271,000 in October, the largest gain since last December. The US unemployment rate fell to 5 per cent, the lowest since April 2008.
Back home, benchmark indices closed on a flat note on Friday. Sensex closed 38.96 points down at 26,265.24 while Nifty settled the day 1.15 points down at 7,954.30.
(With agency inputs)