- Defying weak global cues, Indian stock market benchmark Nifty 50 ended in the green for the fifth consecutive session on Wednesday, May 22.
- The Indian stock market experienced low volatility on Wednesday as the fear index India VIX dropped 1.6 per cent to 21.5.
- “Interest in the FMCG sector has risen due to the potential for an early onset of monsoon,” said Vinod Nair, Head of Research, Geojit Financial Services.
Indian stock market sees fifth consecutive session of gains, driven by key sectors and easing election jitters.
Nifty 50 Continues Upward Trend Amid Low Volatility
The Indian stock market benchmark Nifty 50 ended 69 points, or 0.31 per cent, higher at 22,597.80, marking its fifth consecutive session in the green. This upward trend was supported by major contributions from shares of Reliance Industries, Infosys, Hindustan Unilever (HUL), ITC, and HDFC Bank. Over these five sessions, Nifty 50 has climbed by about 2 per cent. The market experienced low volatility as the fear index India VIX dropped 1.6 per cent to 21.5, reflecting easing election-related jitters and a positive medium-to-long-term outlook.
Mixed Performance Across Different Market Segments
While the Nifty 50 and Sensex showed gains, the mid- and small-cap segments underperformed. The Nifty Midcap 100 index rose by 0.19 per cent, but the Nifty Smallcap 100 index declined by 0.35 per cent. Weak global cues, including the release of the minutes from the latest US Federal policy meeting, also capped gains. Among global peers, Japan’s Nikkei fell by 0.85 per cent, while China’s Shanghai Composite Index ended flat. European markets like France’s CAC 40, the UK’s FTSE, and Germany’s DAX were down by up to half a per cent when the Nifty 50 closed.
Sectoral Indices and Expert Insights
Sectoral performance was mixed, with Nifty FMCG (up 1.43 per cent), Realty (up 1.41 per cent), Media (up 0.73 per cent), and IT (up 0.70 per cent) showing significant gains. On the flip side, Nifty Metal (down 0.62 per cent), Nifty Bank (down 0.55 per cent), Financial Services (down 0.52 per cent), Private Bank (down 0.41 per cent), and PSU Bank (down 0.34 per cent) closed as the top losers among sectoral indices. Vinod Nair, Head of Research at Geojit Financial Services, noted that despite mixed global market sentiments, Indian markets exhibited a subtle positive trend. “Investors are optimistic about stable Q4 earnings and easing election jitters that had previously increased volatility,” he said.
Conclusion
In summary, the Indian stock market has shown resilience and a positive trend despite weak global cues and election-related uncertainties. Key sectors like FMCG, Realty, Media, and IT have contributed to the gains, while mid- and small-cap segments have underperformed. Experts suggest that while the market may remain volatile until the final phase of the election, the medium-to-long-term outlook remains positive. Investors are advised to focus on stock fundamentals and consult certified experts before making any investment decisions.
