Markets rebound on Shah's 400+ call
Amit Shah sought to dispel recent concerns over BJP's performance in the general elections. While emphasising that the ruling party and its allies will get over 400 seats, he told NDTV the market would «shoot up» after June 4 — the election results day — and suggested buying stocks before that.
Benchmark Nifty rose 0.22%, or 48.85 points, to close at 22,104 while the Sensex gained 0.15%, or 111.66 points, to close at 72,776. Both indices had fallen over 1% each earlier in the day but bounced back mid-way through the session following the senior minister's remarks.
«The rebound in markets was largely due to improved sentiment following Amit Shah's statement that markets will move up after elections along with some bargain buying at 22,800 levels, especially after the sharp drawdown from higher levels,» said Manish Chowdhury, head of research at Stoxbox.
The Sensex and Nifty have fallen around 2.5% since May 2 on worries that BJP — the Dalal Street favourite — may not secure as many seats as projected earlier in the general elections.
Selling by overseas investors has also weighed down sentiment. On Monday, foreign portfolio investors (FPIs) net sold shares worth ₹4,498.92 crore, taking their sales tally for May to over ₹22,000 crore
Domestic institutions were buyers to the tune of ₹3,562.75 crore on Monday.
India's Volatility Index (VIX) — the stock market's fear gauge — jumped 11.5% to 20.6 on Monday, suggesting traders see more risks to equities in the near-term. In the past month, the volatility index has
