Sensex, Nifty sharply advance on back of Maha assembly polls results
Sensex and Nifty sharply advanced in the morning trade on Monday on the back of Maharashtra assembly election.
After Tuesday’s advance, the key equity indices succumbed to selling pressure yet again as the Sensex shed over 200 points on Wednesday amid record volatility.
The ‘fear index’ or the ‘VIX’, indicators of the volatility in the market, jumped to a 52-week high of 29.08 before settling at 28.6.
The BSE Sensex lost 203 points or 0.55 per cent to 37,114.88 and the Nifty closed 65.05 points or 0.58 per cent lower.
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The broader markets also ended lower. The mid-caps ended 0.67 per cent lower and the small-caps declined by 0.45 per cent.
“The market slid on profit booking despite an initial extension in yesterday’s rally as investors remained watchful on global trade and liquidity squeeze by FIIs,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Rupee strengthened after RBI announced plans to conduct open market operation. IMD predicted southwest monsoon to start from next month which will be a key trigger for consumption and rural economy,” Nair added.
Yes Bank was the top loser among the Nifty50 stocks, declining over 8 per cent.
“Prices are in a bearish trend… due to concern over its balance sheet, asset quality, exposure to IL&FS, Directors and now RBI appointing an additional Director for two years,” said Mustafa Nadeem, CEO, Epic Research.
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