Sensex, Nifty in mild green as confidence grows in BJP victory; finance stocks lead gains, IT loses

Cello World Ltd posted a healthy performance in Q4FY24, driven by volume growth as well as margin improvement, thanks to the fall in raw material prices.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

BSE Sensex and NSE Nifty 50 traded with mild gains on May 28, as investors grew more confident about Prime Minister Narendra Modi’s BJP-NDA winning the general elections. With just a week ahead of the election results, the market expects that the continuation of the government would lead to policy continuity.

“Both FIIs and DIIs turning buyers, and bears covering their short position, led the market to all-time highs in the past few sessions. This is indicative of a higher probability of political continuity,” said Nirav Karkera, Head of Research at Fisdom.

At 9.25 am, the Sensex was up 123 points or 0.2 percent at 75,513 and the Nifty 50 was up 43 points at 22,976. Financial services and metals stocks led the gains while IT stocks were the biggest laggards.

Also Read | Rapid expansion of Zomato, Swiggy to impact QSR sales, says report

HDFC Bank and Bajaj Finance stocks contributed the most to the gains in Nifty 50 in early trade. Hindalco Industries and Tata Steel shares led the Nifty Metal index higher. Nifty Metal was the top sectoral gainer, rising 1.2 percent.

Hindalco, which reported its Q4 FY24 earnings results on May 27, delivered a resilient financial performance despite a low commodity price environment. The stock gained nearly 3 percent, emerging as the top gainer on Nifty 50.

However, amid the market buoyancy, experts also point out the risks of adverse election results. "The higher the conviction that the market has in a certain outcome, the higher is the risk of disappointment," said Karkera.

There are concerns regarding higher volatility and a weak market breadth as well. Volatility index India Vix is on a continuous rise. It rose 3 percent on May 28 to nearly 24. It has more than doubled from 10 in just a month.

Follow our live blog for all the market action

And, although the headline indices have been growing, the market breadth has not been keeping pace. "One would want a healthy growth in the market breadth as well for building deeper conviction. However, this could be attributed to the fact that election results are yet to be announced," said Karkera.

Going forward market participants are likely to be cautious of leverage, and opt for large caps and high-quality midcaps, he said.

The broader market took a hit on May 28 with BSE Midcap and BSE Smallcap index falling 0.2 percent and 0.6 percent, respectively.

“Traders should consider profit booking at higher levels near 23,100 levels prior to the great event of election outcomes,” said Deven Mehata, Research Analyst at Choice Broking.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.