The Indian benchmark indices, Sensex, Nifty, are set to open higher on Monday, taking cues from exit polls and positive trading across Asian markets. Bullish trends in the SGX Nifty Index Futures for May delivery, which were trading at 11,679, up by 244.50 or 2.14 per cent, at 9:52 AM, Singapore Time, also indicated a positive start for local bourses.
Market would react to exit poll results which predicted that the BJP would win the Lok Sabha elections 2019 with a thumping majority. Analysts believe the market will cheer the prospect of a stable government at the centre. Also, the possibility of the BJP returning with absolute majority can lift the spirit further.
Some of the experts opined that exit polls may infuse volatility in the market and investors should refrain from making aggressive investment and adopt a high degree of caution as market may swing in both directions.
On May 17, the 30-share BSE benchmark closed 537.29 points, or 1.44 per cent, higher at 37,930.77 and the NSE Nifty advanced 150.05 points, or 1.33 per cent, to end at 11,407.15. During the week, the Sensex rose 467.78 points, or 1.24 per cent, and the Nifty climbed 128.25 points, or 1.13 per cent.
Broader indices also ended in green in line with benchmark indices, with the BSE mid-cap and small-cap indices gaining as much as 1.08 per cent and 0.51 per cent, respectively.
The Market breadth, indicating the overall strength of the market, was strong. Out of 3038 traded shares, 1556 advanced, while 1292 declined and 189 remained unchanged.
On NSE Future and Options, total number of contracts traded in index futures was 3,43,947 with a total turnover of Rs 24,748.20 crore. Along with this total number of contracts traded in stock futures were 9,43,088 with a total turnover of Rs 53,861.41 crore. Total numbers of contracts for index options were 27,82,056 with a total turnover of Rs 2,10,703 crore and total numbers of contracts for stock options were 6,75,976 with a total turnover of Rs 40,758.07 crore.
FPIs go on a selling spree in May
Foreign investors have turned jittery ahead of Lok Sabha elections result and adopted the sell approach so far this month. Foreign portfolio investment (FPIs) have flushed out Rs 4,900 crore from Indian equities so far in May while Domestic institutional investors (DIIs) remained bullish with net buying of Rs 8,800 crore.
The foreign institutional investors (FIIs) stood as net seller in both equity and debt markets. The net investment of equity and debt reported were Rs -924.20 crore and Rs -246.67 crore on last Friday.
SGX Nifty Index Futures
Positive trends on SGX Nifty indicate a strong opening for the benchmark indices in India. The SGX Nifty Index Futures for May delivery were trading at 11,679, up by 244.50 or 2.14 per cent, at 9:52 AM, Singapore Time.
About 658 companies will declare their quarterly earnings numbers this week, including index heavyweights such as BPCL, HPCL, Tata Motors and Tech Mahindra.
Crude prices jump on plans to continue limiting supplies
Oil prices surged 1% on Monday after Saudi Energy Minister Khalid al-Falih said that oil producing countries have agreed to continue limiting supplies, Reuters reported. Brent crude futures stood at USD 72.98 a barrel around 5:30 am, up 1.1 per cent, against the previous close.
SEBI, exchanges beef up surveillance ahead of poll results
Market regulator Securities and Exchange Board of India (SEBI) and stock exchanges have heightened their surveillance mechanism to keep an eye on any manipulative activities in the market this week ahead of Lok Sabha polls results.
Overseas, Asian markets were mostly trading higher, barring Shanghai SE Composite Index and Hang Seng, despite rising trade tensions between the US and China. In morning trade, Japan's Nikkei 225 added 0.53%, led by gains in index heavyweights such as Fast Retailing and Softbank Group. In Australia, the ASX 200 advanced 1.23% and Taiwan TSEC 50 Index surged 0.60%. China's Shanghai Composite Index was down 1.08% to trade at 2,852.45, while Hong Kong's Hang Seng slipped 0.28% to 27.871.84.
Edited by Chitranjan Kumar