SENSEX and NIFTY50 open in red amid uncertainties over election results and spike in volatility index

Benchmark Indices - NSE NIFTY 50 and the 30-share BSE SENSEX started the trading day in the red on Wednesday. The SENSEX declined by -0.38% trading around the 73,200 level, while the NIFTY plunged by -0.33%, trading around the 22,250 level. A lower voter turnout in the first three phases of the ongoing Lok Sabha elections and persistent selling by FIIs are turning out to be the damper for the market.

The recent spike in the India VIX is unsettling market participants on D-Street. India VIX is trading above the level of 17 mark and on Wednesday it is up by 2.5%.

US Markets - On Tuesday, Wall Street trimmed its gains as investors evaluated the likelihood of Federal Reserve rate cuts. Treasury yields decreased while the dollar strengthened. Disappointing US jobs data and slow GDP growth fueled speculation regarding potential Fed rate cuts.

Top Gainers and Losers - Within the Nifty 50 space, Coal India (+2.4%), BPCL (+2.0%), Adani Enterprises (+1.7%) are among the top gainers. Dr Reddy’s Laboratories (-3.2%), Asian Paints (-1.4%) and Hindustan Unilever (-1.4%) were among the top losers.

Broader Indices - In the broader markets Nifty Midcap 100 was almost flat and traded around the 49,700 level. While the Nifty Smallcap 100 traded higher by 0.88% and is above the 16,500 level. Market breadth remains positive as 1,194 stocks advance, while 717 stocks decline.

Sectoral Performance - Nifty PSU Bank (+1.01%), Nifty Metal (+0.63%) and Nifty Energy (+0.56%) were among the top gainers. Nifty Realty (-1.12%), Nifty Bank (-0.45%) and Nifty Financial Services (-0.34% ) were the laggards.

Commodities - Early Wednesday, crude oil prices declined below $83 per barrel. This was due to the reports from market sources indicating an uptick in US crude and fuel inventories, suggesting subdued demand. Now, crude oil trades at the lowest level last seen in mid-March.

JSW Energy shares were locked in 5% upper circuit, with a day high of ₹617.9 per share following the announcement of robust Q4 results. Read More

Stocks in F&O Ban - Stocks that are banned for trading in the F&O segment on May 08, 2024, are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Biocon, GMR Airports Infrastructure, Vodafone Idea, Punjab National Bank, Steel Authority of India (SAIL) and Zee Entertainment Enterprises.