After A Slow Start, Markets Jump Back In Confidence: Indices Make Gains Of Close To 2%; Sensex Jumps Over 1,200 Points

The Indian indices, which had a rather tumultuous day on June 4, as the counting for the Lok Sabha elections was underway are en route to attaining to some semblance of normalcy.

Recovery From Red Zone

On June 4, the market hit new lows. At one point of the day, during the intraday trade, both Sensex and Nifty slipped by over 7 per cent. The markets marginally stabilised. However, the indices closed in red, with the BSE Sensex closing the day at 72,562.93, down by 3905.85 points or a mammoth 5.11 per cent.

Similarly, the NSE Nifty ended in negative territory at 21,884.50, down by 5.93 per cent or 1,379.40 points. Through this, the markets lost almost all of what they had managed to bag a day before, on June 3.

The markets on Wednesday, June 5, started on a cautious and positive note, with an increase of under 0.50 per cent for both indices.

The numbers have only progressed in a better direction for investors at Dalal Street. Halfway through the day, the indices have only bettered their position. Although full recovery from yesterday's big blow still seems to be at a distance.

Markets in Green

At 12:09 IST the BSE- Sensex scaled back to some normalcy with a 1.63 per cent or 1063.07 points gain, taking the overall number to 73,223.63. The NSE Nifty also made gains of 419.10 points or 1.92 per cent, to take the numbers to 22,303.60. Nifty Bank also exhibited gains, as it moved to 47,660.05, increasing its value by 731.45 points or 1.56 per cent.

It is interesting to note that the Nifty Midcap is continuing a positive trend, improving at a better rate than others, as it jumped 3.67 per cent or 397.75 points to reach 11,238.75.

In the Nifty midcap segment, Max Health (with 6.30 per cent gains), Indus Tower (with 6.49 per cent gains) and Jubliee Food (6.48 per cent gain) stood out as the top gainers.

Given the current trend, it remains to be seen, as to how the markets progress with the passage of time in today's day of trading. Developments from the vestibules of power, especially surrounding government formation, could further send the markets into another frenzy.