Traders are now anticipating the results of the elections in Gujarat and Himachal Pradesh, which may have a negative impact on the share markets.
The stock market is very sensitive to national and international events. Elections are the same way. Every country's election is significant because it determines the course of that nation's future development in terms of its economy, society, and government. Volatility in the Indian stock market often increases and is especially prone to the effects of election fever. Even though it's common knowledge that election results may have an impact on the stock market, the issue of "How does it happen?" lingers.
The markets might be affected negatively by the outcomes of the elections in Gujarat and Himachal Pradesh, which traders are now anticipating. However, next week's expected Fed meeting will be a major influence guiding the market in the short term. The Sensex, a key index on the Bombay Stock Exchange, fell 45 points, or 0.07%, to 62,365 as of 9.20 a.m. At the same time, the NSE's Nifty50 index fell 11.6 points, or 0.06%, to 18,548.90.
In early trading, the BSE midcap and smallcap indexes both gained half a percent, outperforming their more widely followed counterparts. The India VIX fear index fell by about 1 percent, to 13.97. IT and financial services were the only index heavyweights trading in the negative, while PSU banks, metals, media, and real estate had the most gains.
The largest increase was recorded by Eicher Motors, at 2%, followed by gains of 1% for each of IndusInd Bank, Adani Ports, Adani Enterprises, and SBI. Conversely, Kotak Mahindra Bank, SBI Life, HDFC Life, TCS, and Tata Motors all fell by one percent.
Early trading shows a 13-paise increase in the value of the rupee over the dollar, reaching 82.34.
As oil prices fall and the US dollar falls overnight on growth fears in the world's top economy, the Indian rupee strengthens by 13 paise to 82.34 per dollar in early trading. According to the NSE, foreign institutional investors sold a net 1,242 crore rupees worth of stocks on Wednesday, while domestic investors acquired a net 389 crore rupees worth of shares.
Also, READ: Gujarat Election Results LIVE 2022: BJP breaks 1985 record to retain power for seventh time, AAP makes crucial inroads
Thursday's Asian market performance was a mixed bag as investors were torn between bullish and bearish factors such as fears of a US recession and China's relaxation of its Covid restrictions. The overnight statistics sent stock prices on Wall Street plummeting. After falling for four days in a row, oil prices recovered as investors considered the relative risks of a downturn in the US and the effect of China's measures to lift virus limits. The price of a barrel of Brent was approximately USD 77-78.
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