The Indian headline indices- Sensex and Nifty are likely to open higher as it is a result day and the exit poll predicted BJP’s victory with a vast majority in elections 2019. The stock markets have been on rally since the exit poll results. The SGX Nifty ended 23 points down at 11,757 from the last close.Yesterday, while the Sensex ended up 140.41 points at 39110.21 level, Nifty was higher by 28.80 points at a level of 11737.90. We take a close look at key things which will drive the market today:
Lok Sabha election results: Today is a big event as the Lok Sabha election results would be announced today. The exit poll have already announced a major victory for the ruling Bharatiya Janata Party in 2019 election results. The stock markets have been on rally since the exit poll results came out on Sunday as the investors are expecting stable government at the centre which would bring more reforms in the government economic policies and would lead to job creation.
FIIs and DIIs: The foreign institutional investors or FIIs sold shares worth Rs 965.02 crore, while the domestic institutional investors or DIIs sold shares worth Rs 157.75 crore as on Wednesday, according to NSE data.
Rupee movement: The Indian rupee on Wednesday closed marginally higher against the US dollar ahead of the Lok Sabha poll results to be announced today. The rupee closed at 69.67 a dollar, up 0.06% from its previous close of 69.72. The Indian currency had opened at 69.68 a dollar on Wednesday. Spot INR is expected to trade in a lower range between resistance at 69.85 and support at 69.30 with a negative bias due to likely win for the ruling government along with a sharp decline in crude oil prices yesterday, according to Amit Sajeja, Associate Vice President, Motilal Oswal.
Crude oil prices: The crude oil prices fell on Thursday, extending falls from the previous session on account of rising US crude inventories and sluggish demand from refineries. While the international benchmark oil Brent was last seen at $70.61 per barrel, 38 cents lower than the previous close, the US WTI was down 35 cents at $61.07 from the previous settlement. According to market experts, the crude oil prices are likely to be under pressure because of the pressure from rupee appreciation.