The Indian headline indices- Sensex and Nifty are likely to open positive ahead of Lok Sabha election results on Thursday. The stock market has been on a rally since exit poll results predicted victory for BJP.
The Indian headline indices- Sensex and Nifty are likely to open positive ahead of Lok Sabha election results on Thursday. Yesterday, the Sensex, Nifty touched their fresh record high in the intra-day trading and pared gains by around 1 per cent as the traders booked profits. The stock markets have been on a rally since the exit poll results predicted major victory for the ruling Bharatiya Janata Party in 2019 elections. The SGX Nifty today ended up 12 points at 11,738.50 level from the previous close. Yesterday, while the Sensex closed 383 points lower at 38,970 level, the Nifty50 also settled down by 119 points at 11,709 level. We take a close look at key things which will drive the market today:
Mutual Fund investment in ETF derivatives: In a bid to give a boost to Mutual Funds to participate in the commodities market, the market regulator Securities and Exchange Board of India or SEBI has allowed them to circular to invest in Exchange Traded Commodity Derivatives (ETCDs) with some restrictions. In a circular, the market regulator said that no mutual fund schemes can invest in physical goods except in ‘gold’ through Gold Exchange Traded Funds (ETFs).
FIIs and DIIs: While, the foreign institutional investors (FIIs) bought shares worth Rs 1,185 crore on a net basis on Tuesday, the domestic institutional investors (DIIs) sold shares worth Rs 1,090 crore on the same day, according to NSE data.
Rupee movement: The Indian currency closed lower by 0.4 per cent at 69.71against the US dollar from its previous close on Tuesday. While the dollar index fell 0.05 per cent to $98.01. According to Kedia Advisory, the USD INR will trade in the range of 69.61-69.96 for the day. “Rupee traded in a range tracking higher crude oil prices even as investors stayed cautious ahead of election results amid thin volumes. However, caution remains until the actual results scheduled for Thursday, and investors are refrain from making aggressive positions awaiting the same,’ it said in a note.