A positive election result in Haryana for the ruling political party, the BJP, lifted investor sentiment on Tuesday, thereby helping the market to end its longest losing streak of the year. Indian benchmark indices — BSE Sensex and NSE Nifty50 — rose on Tuesday after closing in decline for six straight sessions. At close, the Sensex was up 584.81 points or 0.72% at 81,634.81, and the Nifty was up 217.40 points or 0.88% at 25,013.20.
“The BJP’s victory in Haryana is a positive development for the markets, particularly given that exit polls had suggested an opposite outcome, contributing to market pressure yesterday,” said Santosh Meena, Head of Research, Swastika Investmart. Of the 90 assembly seats in Haryana, the BJP won 48 seats, according to the Election Commission website. The Congress, which was sure of a comeback, won 37 seats.
He added, “While the recent market correction is driven by various factors, there is still some nervousness surrounding upcoming state elections. However, the outcome in Haryana, a focal point for the farmer agitation, is expected to provide the market with some relief and confidence, especially as it looks ahead to the Maharashtra elections.”
Prashanth Tapse, Senior VP (Research), Mehta Equities, said the recovery came despite weak cues from Asian and European markets, although the short to medium-term domestic market outlook remains hazy amid FPI sell-offs and lingering West Asia conflict.
Relentless selling by foreign portfolio investors (FPIs) and growing tension in the Middle East have created nervousness in the Indian market.
FPI, who are shifting their focus to China, sold shares worth Rs 5,730 crore on Tuesday in the Indian equity market. China’s benchmark Shanghai Composite Index surged by 4.59% on Tuesday while the Shenzhen Index rose by 9.17%.
Meanwhile, Hong Kong’s Hang Seng Index fell more than 9% on Tuesday, its biggest fall in 16 years, after China left investors disappointed by a lack of new stimulus and few details about measures announced in late September.
