After their worst day in more than four years during the previous session, benchmark equity indices Nifty50 and Sensex rebounded today, June 5, as Prime Minister Narendra Modi’s BJP secured less seats in the Lok Sabha election results. As Nifty reached 22,350 points, the BSE Sensex was up more than 1,400 points at 73,500.
According to the Election Commission, the Bharatiya Janata Party (BJP) secured 240 seats in the Lok Sabha but was short of the 272 seats required for a simple majority. As a result, on Tuesday, the S&P BSE Sensex and NSE Nifty 50 both closed around 6% lower.
HUL, Nestle India, Asian Paints, HCL Tech, Kotak Mahindra Bank, and ITC all opened higher on the Sensex. Today’s lower openings include Power Grid, L&T, NTPC, SBI, and Bharti Airtel. After falling sharply on June 4, Adani Group equities are still under pressure and lost 12% today. Sectorally, the Nifty FMCG increased 3% as a result of the India stocks of HUL, Marico, and Dabur. Nifty Healthcare, Pharma, IT, Media, Auto, and IT each opened more than 1% higher.
Ahead of this week’s payroll data, investors are anticipating a September interest rate cut from the Federal Reserve, which is why Asian markets increased today while the dollar remained stable. Hong Kong’s Hang Seng index increased 1%, Nikkei declined 1%, China equities were neutral, and the broadest MSCI index of Asia-Pacific shares outside of Japan was up 0.24%.
Tokyo’s stock market opened lower, although Sydney and Seoul saw a little increase in stocks. The future of Hong Kong was bleak as well. The spotlight will be on the Indian markets, which had their worst day in over four years when Prime Minister Narendra Modi’s party lost its majority in parliament.
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