Following the Congress' rout in the Assembly polls, investors are in a dilemma over the next move of the market and have gone into hibernation for now if the lower volumes on Wednesday are any indication.
Though the market could reclaim most of its lost ground by the end of the session, the cash segment of the National Stock Exchange (NSE) reported a turnover of Rs 12,389 crore against Rs 15,021.49 crore on Tuesday. The turnover on BSE was Rs 2,652 crore compared to Rs 3037.53 crore.
The BSE Sensex ended the Wednesday almost flat with a loss of 27.77 points at 17,145.52 points while its NSE counterpart Nifty closed the day down just two points up at 5,220.45.
"The thought of regional parties becoming strong is creating a sense of mixed mandate for the next Lok Sabha elections. In that backdrop, it appears that the government at the Centre would not be able to push strong reforms. Hence, the markets are correcting," said Dinesh Thakkar, chairman and managing director (CMD) of Angel Broking.
"The government should learn lessons from the poll results. Appeasement of a section of people may not work. It should think of betterment of the nation as a whole," said Deven Choksey, managing director of KR Choksey Shares and Securities.
"Thus, sticking to economic reforms is the best path ahead and Budget is the best occasion for introducing a second generation of reforms," Choksey added.
Courtesy: Mail Today