Dalal Street on a rollercoaster! reflects a cautious optimism among investors
After suffering its worst day in over four years due to the Lok Sabha election results, the benchmark equity indices Nifty50 and Sensex rebounded today.
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![Dalal Street on a rollercoaster! reflects a cautious optimism among investors Dalal Street on a rollercoaster! reflects a cautious optimism among investors](https://www.bizzbuzz.news/h-upload/2024/05/31/1909822-markets.webp)
After suffering its worst day in over four years due to the Lok Sabha election results, the benchmark equity indices Nifty50 and Sensex rebounded today. The Bharatiya Janata Party (BJP) secured fewer seats than anticipated, leading to a market downturn as investors reacted to the uncertainty. However, optimism returned as BSE Sensex surged over 1,400 points to 73,500, while Nifty climbed to over 22,350 points.
Several factors contributed to this recovery. Firstly, stocks like HUL, Nestle India, HCL Tech, Asian Paints, Kotak Mahindra Bank, and ITC opened higher, instilling confidence in investors. Conversely, Adani Group stocks continued to face pressure, declining by 12% following their previous plunge.
Sector-wise, Nifty FMCG saw a notable surge of 3%, driven by gains in HUL, Marico, and Dabur India stocks. Additionally, Nifty Auto, IT, Media, Pharma, and Healthcare sectors opened over 1% higher each, further bolstering market sentiment.
On the global front, Asian stocks rose, and the dollar remained steady as investors anticipated an interest rate cut from the Federal Reserve in September. This sentiment was reflected in the performance of various indices, with MSCI's Asia-Pacific shares outside Japan rising by 0.24%, although the Nikkei fell by 1%.
In terms of institutional activity, Foreign institutional investors (FIIs) sold Indian shares worth ₹12,436 crore, while domestic institutional investors (DIIs) sold equities worth ₹3,219 crore on Tuesday.
The market's recovery today reflects a cautious optimism among investors, driven by positive developments both domestically and globally.