Sensex, Nifty bounce back after posting worst day in four years as poll verdict anxiety eases

Around 9.30 am, the BSE Sensex recouped some gains and was trading 470 points, or 0.65%, higher at 72,530. The Nifty50 was up 165 points, or 76%, at 22,049.

According to the country's election commission, Bharatiya Janata Party (BJP) won 240 seats, falling short of the 272 seats needed for a simple majority in the 543-member lower house of parliament.

NSE 50 and S&P BSE Sensex closed nearly 6% lower each on Tuesday as voting trends indicated that BJP would have to depend on at least three regional allies to form the government.

From the Sensex pack, HUL, Nestle India, HCL Tech, Asian Paints, Kotak Mahindra Bank, and ITC opened higher, while Power Grid, L&T, NTPC, SBI, and Bharti Airtel opened lower.

On the sectoral front, FMCG surged 3%, led by HUL, Marico, and Dabur India. Nifty Auto, IT, Media, Pharma, and Healthcare also opened over 1% higher each.

Meanwhile, Adani Group stocks remained under pressure, falling as much as 12% in early trade.

Experts View
"The market will take some time to absorb the unexpected . Stability will return to the market soon but volatility will continue till there is clarity on the cabinet and the key portfolios," said V K Vijayakumar, Chief Investment Strategist, .

"One positive of the sharp is that the excessive valuations have moderated a bit and this will facilitate institutional buying once clarity emerges on the formation and composition of the cabinet," Vijayakumar said.

Deven Mehata, Research Analyst at Choice Broking, said, "Nifty can find support at 21,800 followed by 21,700 and 21,500. On the higher side, 22,000 can be an immediate resistance, followed by 22,150 and 22,200."


Asian stocks rose on Wednesday, while the dollar was steady as a softening U.S. labour market firmed up bets of an interest rate cut in September from the ahead of a crucial payrolls report this week.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.24%, while the Nikkei fell 1% as the Japanese yen flirted with two-week highs. China stocks were mixed, with the blue-chip CSI300 index little changed in early trading, while Hong Kong's Hang Seng index rose 1%.

FII/DII Tracker
Foreign institutional investors (FIIs) sold a record 12,436 crore worth of Indian shares on Tuesday, provisional data from the showed on Tuesday. Meanwhile, domestic institutional investors also sold equities worth Rs 3,219 crore on the same day.

Oil Slips
extended losses slightly from the previous session in early Asian trading on Wednesday after an industry report showed builds in U.S. crude and fuel stockpiles, adding to concerns around demand growth.

Brent crude futures fell 14 cents, or 0.2%, to $77.38 a barrel. U.S. West Texas Intermediate crude futures fell 18 cents, or 0.3%, to $73.07 a barrel.

Both contracts fell nearly a dollar in Tuesday's session and around $3 a barrel on Monday, under pressure after the OPEC+ group detailed plans to increase supply from October onwards despite recent signs of weakening demand growth.

Currency Watch
The Indian rupee rose 7 paise to 83.44 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.09% to 104.2 level.

(With inputs from agencies)