Uncertainty ahead of poll results hits bourses

Mumbai: Equity benchmark Sensex on Thursday crashed over 1,000 points, while NSE Nifty dived below the 22,000 level due to across-the-board selloff amid general election uncertainties. Besides, persistent foreign fund outflows and heavy selling pressure in HDFC Bank, Larsen & Toubro and Reliance Industries weighed on investor sentiment, traders said.

Declining for the third day running, the 30-share BSE Sensex dropped 1,062.22 points or 1.45 per cent to settle at 72,404.17. During the day, it tanked 1,132.21 points or 1.54 per cent to 72,334.18. The NSE Nifty dived 345 points or 1.55 per cent to 21,957.50. It tumbled 370.1 points or 1.65 per cent to 21,932.40 during the session. “The broader market witnessed volatility, underscoring caution on account of Q4 earnings and general election uncertainties, which led investors to stay on the sidelines.

We expect the trend to continue in the short term as the market slid below the physiological level of 22,000. The global indices are trading with mixed cues ahead of the BOE policy meeting later today and US inflation figures due next week,”said Vinod Nair, Head (Research), Geojit Financial Services.

“Nifty ended sharply lower led by institutional selling and traders squaring up due to nervousness on election progress. World shares were mostly lower on Thursday ahead of the Bank of England’s policy decision and after the US market’s pause stretched into a second day and as Chinese stocks rose after China reported better-than-expected trade figures for April,” said Deepak Jasani, head (retail research), HDFC Securities. “The market is continuously witnessing pressure ahead of the election outcome. We don’t have any global reason for this correction, while some uncertainty ahead of the big event is causing profit-booking in the market.