The stock market indices, Sensex and Nifty 50, opened cautiously on Wednesday, experts say that DII's buying balances FII's selling.
On Wednesday, Nifty 50 index gained 20 points to 22,549.70 from the previous close of 22,529.05, while the Sensex also took a small lead of 91 points to 74,044.53 after closing at 73,953.31 on Tuesday.
"One inference that can be drawn from institutional activity this month is that there is no excessive concern regarding the much-talked-about election results jitters. Net institutional selling is almost nil, as the FII selling of Rs 37,500 crores has been neutralized by DII buying of Rs 37,369 crores so far this month. It is important to understand that FII selling has been triggered by the outperformance of Chinese stocks, which nudged FIIs to sell in expensive India and buy in cheap Hong Kong. Therefore, institutional activity does not reflect any election-related jitters" said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added "the market is likely to respond to the election outcome earlier than June 4th. Investors can consider buying stocks before the results, prioritizing large caps that are fairly valued compared to the broader market, where valuations are much higher. A possibility around the election results time is that both FIIs and DIIs could turn into buyers, lifting the large caps and the indices to higher levels".
The Volatility Index has declined by 9 per cent in the recent, experts say it indicates a return of stability in the market.
At the time of filing the report, in the Nifty 50 index, 22 stocks were trading in advance while 26 were trading in decline, and 2 remained unchanged. Coal India, Hindustan Unilever, Britannia, Reliance, and UltraTech Cement emerged as the top gainers of the day in the Nifty 50 list, while Hindalco, Shriram Finance, Sun Pharma, JSW Steel, and Tata Steel made it into the list of top losers.
On Wednesday's trading session, a total of 2,505 stocks opened for trading, out of which 1,152 traded with gains while 1,230 declined and 123 remained unchanged.
In Asia, stocks slipped after the S&P 500 hit another record ahead of Nvidia Corp.'s earnings. Shares in Japan and South Korea opened lower, while Australia's benchmark climbed. According to experts, Nvidia's performance is crucial in gauging the sustainability of the bull market, with its revenue expected to benefit from high demand in its data-centre business.
Investors are monitoring the Federal Reserve's latest meeting minutes, which will be released today. In the commodity market, gold, silver, and copper consolidated near recent highs, while oil slipped on reports of increased stockpiles.
On Tuesday, domestic equity indices ended a cautious session flat. The Sensex fell 52.63 points to close at 73,953.31, while the Nifty 50 rose 27.05 points, or 0.12%, to 22,529.05. The Nifty 50 formed a bullish engulfing candlestick pattern with good volume on the daily chart, indicating strength. (ANI)
