Vote count trend to dictate market movement today

Vote count trend to dictate market movement today

AgenciesUpdated: Wednesday, May 29, 2019, 07:56 PM IST
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AFP PHOTO/ Indranil MUKHERJEE |

Mumbai: The early trends from the counting of votes and the identity of the party that will claim power at the Centre will determine which direction benchmark indices will swing today.

Market participants will brace themselves for a volatile session as they look for clues on the identity of the winning coalition, after counting of votes begins at 0800 IST. Analysts have warned that large intraday swings can be expected in early trade as clear indication of the winning party may not emerge till at least noon.

Investors have largely factored in a win for the incumbent Bharatiya Janata Party-led National Democratic Alliance, with the BJP alone seen winning majority. Nifty 50 has gained 6 pc in the past five sessions on optimism that the current government would reclaim power at the Centre, as predicted by the exit polls.

Brokerage Aditya Birla Money said that mid- and small-cap stocks could outperform their large-cap peers today, in case the BJP single-handedly wins majority, handing Prime Minister Narendra Modi a second five-year term. However, if the NDA falls short of the majority mark, analysts expect a sharp sell-off as it will be seen as a major negative.
Market participants may also focus on minutes of the Federal Reserve Open Market Committee’s April meeting.

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