Mumbai
High volatility gripped the Indian stock markets during Wednesday’s trading session, driven by concerns over decreasing voter turnout in the ongoing general elections. The volatility index VIX surged to a 15-month high, marking a 40% increase over the past month.
At the closing bell, Nifty maintained its position at 22,302.50, while Sensex saw a marginal decline of 45 points, closing at 73,466.39. Ajay Bagga, a banking and market expert, attributed the market fluctuations to three domestic factors: election anxiety, lackluster earnings season, and profit booking near all-time high levels.
In the NSE indices, Nifty Bank plummeted by 264.25 points to 48,021, and Nifty Financial Services dropped by 115.15 points to 21,428.35. However, Nifty Next 50 index witnessed a gain of over 1.3%, closing at 64,784.25 points, and Nifty Midcap saw a marginal increase of 82.60 points, closing at 10,925.80 points.
The market opened with significant selling pressure but recovered during the day before declining again at closing. Vivek Karwa of Vridhi Investment noted the market’s volatility, with the India VIX hitting a high of 18 after trading around 12 previously.
Technical analysis suggests selling pressure at higher levels, with the market slipping below the 50-day SMA. Out of 2,697 stocks traded, 1,479 advanced, 1,108 declined, and 110 remained unchanged on the National Stock Exchange.
