Market Opens In Green On Hopes Of Coalition Government; FMCG Stocks Rally

The stock market commenced trading on a slightly positive note today, buoyed by the BJP's victory in the recent general elections, marking their third consecutive term.

The Sensex and Nifty opened nearly 1 per cent up. Among the Nifty companies, 40 showed advances, and 10 recorded declines.

In the Nifty 50 index, Hindustan Unilever, M&M, Britannia, ONGC, and HCL Tech emerged as the top gainers. Conversely, Hindalco, Powergrid, L&T, Adani Enterprises, and Adani Ports were the top losers.

"The current market pattern indicates a consolidation phase within a broader trading range of 22,300 and 21,300. It is advisable to consider taking a contra view of going short or long around given levels. Above the 22,300 level, resistance is expected around the 50 and 20-day SMAs, positioned at 22,400 and 22,500 levels. Gradually reduce long positions at each resistance level,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Following a significant downturn on Tuesday, where the equity market saw its most substantial single-day decline in over four years, India's primary indices, the Sensex and Nifty 50, rebounded today.

The previous day's decline was driven by election tabulation results indicating challenges for the ruling BJP in securing a majority. Despite the BJP-led National Democratic Alliance (NDA) leading in over 290 seats, slightly above the 272 required for a majority, it fell short of the approximately 350 seats won in the 2019 election.

This narrower-than-expected victory raises concerns about the new government's ability to enact reforms vital for sustaining domestic economic growth.

Despite the BJP's election victory, the stock market's slightly positive opening reflects cautious optimism amid broader concerns about the new government's ability to implement crucial economic reforms.

Investors and analysts will closely watch market movements and political developments to gauge future trends. (ANI)