Volatility will be the hallmark on the Judgement Day!
Today is the Judgement Day for the largest democracy in the world and the world will know who will be the 'king'. The markets are pricing in a clear victory for the NDA government and hence any deviation from this could lead to disappointment amongst the market participants. Volatility will be the buzzword in today’s session and the SEBI and the exchanges have stepped up their surveillance mechanisms. We might see a flat opening as indicated by SGX Nifty, however, as the day progresses, a roller-coaster ride could be seen.
Asian markets have been in a declining mode on Thursday as market participants fear the trade war is not ending any time soon as the situation is getting increasingly complicated. The Japanese stock index Nikkei 225 has lost 0.82 per cent, Hong Kong’s Hang Seng has dropped 1.2 per cent and China’s Shanghai Composite index has plummeted 1.04 per cent.
Back home, the benchmark indices ended Wednesday’s session in the green with BSE Sensex and Nifty reclaiming their crucial psychological 39,100 and 11,700 levels, respectively. Volatility was seen during the day as anxiety persisted on D-Street ahead of the final results of the General Elections 2019. The broader markets exhibited mixed trend as Nifty Midcap ended with marginal losses and Nifty Smallcap added 0.46 per cent. The sectoral indices witnessed mixed trend with Nifty Private Bank and Nifty Bank being the top gainers, while Nifty FMCG, IT and Media ending with losses.
The US stocks ended Wednesday’s session with losses as investors were concerned that the trade relations between the world's two largest economies may remain under pressure for some time and that a quick deal may not materialise anytime soon. Also, the FOMC published the minutes from its latest meeting and the minutes appeared to show a more upbeat tone for the economy, with few signs of inflation. Further, the central bank seemed inclined to hold interest rates steady. In the end, the Dow Jones Industrial Average shed 0.40 per cent, the S&P 500 lost 0.30 per cent and the Nasdaq Composite fell 0.50 per cent.
The European markets ended Wednesday’s session on a mixed note. Germany’s benchmark DAX gained 0.21 per cent, UK’s FTSE added 0.07 per cent and France’s CAC 40 index dipped 0.12 per cent.