The headline indices- Sensex and Nifty are likely to open higher after the exit polls predicted a landslide victory for Narendra Modi-led Bharatiya Janata Party or BJP in Lok Sabha election results to be announced on May 23. The SGX Nifty ended in green at 11,731.50, up 297 from the previous close. On Friday, the Sensex rose 537.29 points, or 1.44 percent, to settle at 37,930.77, and the Nifty 50 surged 150.05 points, or 1.33 percent, to close 11,407.15 level from the previous close. We take a close look at key things which will drive the market today:
Exit Polls results: The exit poll results have predicted a landslide victory for Narendra Modi-led Bharatiya Janata Party with more than 300 seats in 2019 LOk Sabha elections. The results would be announced on May 23. An exit poll is a poll conducted immediately after the voters leave the polling booths. It indicates as to which government will form the next government.
Rupee movement: The Indian rupees has been under pressure on account of trade tensions between US and China. The foreign fund outflows and crude oil prices have also put pressure on Indian Rupee. Yesterday, the Indian rupee slumped 20 paise or 28 percent at 70.22 against its previous close of 70.03.
FIIs and DIIs: Foreign institutional investors (FIIs) offloaded shares worth Rs 1,058 crore on a net basis, while domestic institutional investors (DIIs) bought shares worth Rs 1,810 crore on Friday, according to NSE data. The foreign investors have pulled out Rs 6,399 crore from the Indian markets in May on a net basis on account of uncertainties related to Lok Sbaha election results and the escalating US-China trade worries. Before May, the FIIs had invested for three consecutive months. They had injected Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February on a net basis, in both the equity and debt, in the domestic markets.
US-China trade war: The US-China trade tensions escalated after US President Donald Trump issued a directive barring US companies from using Huawei telecommunications equipment and the US commerce department added Huawei to a trade blacklist. Recently, when the world’s super power economy US imposed hiked tariffs on Chinese goods of $200 billion, the latter hit back by imposing tariffs on $60 billion US goods from June 1. China’s finance ministry said it plans to set import tariffs ranging from 5 percent to 25 percent on 5,140 US products of about $60 billion from June 1.