The BSE Sensex and NSE Nifty 50 experienced further declines on May 9, despite opening slightly lower. The ongoing general elections have been causing fluctuations in the market. Both the Sensex and Nifty have been showing weakness over the past four trading sessions, dropping from their recent record highs.
While oil and gas, as well as construction firms, were the main contributors to the losses, automobile companies emerged as the top performers.
Larsen & Toubro faced the most significant decline on the Nifty 50 index after revising its future margin guidance to 8.2-8.3 percent for FY25 to account for disruptions in the supply chain, an unpredictable political climate, and ongoing conflicts in various regions.
Hero MotoCorp, an automobile company, saw its shares rise by more than 5 percent following a strong performance in Q4 FY24. This led brokerage firms to maintain a positive outlook on the company due to its promising growth prospects.
At 10.17 am, the Sensex recorded a decline of 352 points or 0.5 percent, settling at 73,114.17. Similarly, the Nifty 50 also experienced a drop of 102 points, reaching 22,200.40. In the broader market, both BSE Midcap and BSE Smallcap witnessed a decrease of 0.3 percent.
Yesterday, the market made an effort to recover from its losses but ultimately ended up remaining unchanged. According to Nirav Karkera, Head of Research at Fisdom, the indices may continue their recovery attempts later today, but the potential for upside movement could be limited.
The ongoing general elections are having an impact on the market, as investors closely monitor the margin of victory for the incumbent BJP-NDA government. Gaurang Shah, Senior Vice President at Geojit Financial Services, stated that the market is expected to remain volatile until the election results are announced.
Shah anticipates intraday fluctuations in the near future, unless there is a decline in volatility indicated by India VIX. On May 9, India VIX experienced a resurgence after a slight decline in the previous session, following a nine-day consecutive ascent.
Furthermore, the market has not received any significant support from Q4 earnings thus far.
Considering the absence of positive triggers in the market, it is likely to remain weak. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates, mentioned that as long as the index remains below 22,400, short-term weakness will persist. However, if the index manages to stay above 22,410, a relief rally towards 22,500-22,600 cannot be ruled out.
Yedve also noted that the index will find strong support at levels of 22,100-22,000 on the downside, according to a note.