Nifty 50 Climbs for Fifth Straight Session Amid Low Volatility and Positive Sentiment

Services

FNO Stocks with CA Abhay

Stock Market Masterclass

Equity Trading with CA Abhay

Option Trading with CA Abhay

Equity Investment with CA Abhay

Nifty 50 Climbs for Fifth Straight Session Amid Low Volatility and Positive Sentiment

Team FS

22/May/2024

Key Points:

Nifty 50 Gains: Nifty 50 rises for the fifth consecutive session, led by key stocks like Reliance Industries, Infosys, HUL, ITC, and HDFC Bank.
Low Volatility: The India VIX index drops 1.6%, indicating reduced election-related jitters and a focus on stock fundamentals.
Global Cues: Weak global market performance ahead of the US Federal policy meeting minutes release limits further gains.

Defying weak global cues, the Nifty 50 index ended in the green for the fifth consecutive session on Wednesday, May 22. Key stocks such as Reliance Industries, Infosys, Hindustan Unilever (HUL), ITC, and HDFC Bank played a significant role in this upward trend. Over these five sessions, the Nifty 50 has appreciated by about 2%.

Market Performance and Volatility:

The Indian stock market witnessed low volatility on Wednesday, with the fear index India VIX dropping by 1.6% to 21.5. This decrease in volatility is attributed to easing election-related concerns, allowing investors to focus more on stock fundamentals. The medium-to-long-term outlook for the domestic market remains positive.

The Nifty 50 closed 69 points, or 0.31%, higher at 22,597.80, while the Sensex ended the day at 74,221.06, up 268 points, or 0.36%. Despite these gains, concerns over market valuation persist. In the Nifty 50 index, 33 stocks ended in the green, but only four stocks rose by more than 2%.

Mid- and Small-Cap Segments:

The performance of mid- and small-cap segments lagged behind the benchmarks. The Nifty Midcap 100 index rose by 0.19%, while the Nifty Smallcap 100 index declined by 0.35%. This indicates a cautious approach among investors, possibly due to valuation concerns and global market influences.

Global Market Influence:

Weak global cues, especially ahead of the release of the minutes from the latest US Federal policy meeting, capped the gains in the Indian stock market. Among major global peers, Japan's Nikkei fell by 0.85%, while China's Shanghai Composite Index ended flat. European markets also showed a downward trend, with France's CAC 40, the UK's FTSE, and Germany's DAX falling by up to half a percent by the time the Nifty 50 closed.

Outlook and Expert Opinions:

Experts anticipate that the Indian stock market will remain volatile until the final phase of the election on June 1. However, they do not foresee a major market correction in the lead-up to the election results. Investors are advised to remain cautious but optimistic, focusing on stock fundamentals and the broader economic outlook.

In conclusion, while the Indian stock market shows resilience and optimism with five consecutive sessions of gains, underlying concerns about valuation and global market influences continue to play a critical role in investor sentiment. The coming weeks, particularly leading up to the election outcome, will be crucial in determining the market's direction.

Also Read : Today's Stock Market Buzz: Top Gainers and Losers Revealed

Join our Telegram Channel and WhatsApp Channel for regular Updates.

Services

Nifty 50 Climbs for Fifth Straight Session Amid Low Volatility and Positive Sentiment

Related News