Indian stocks have witnessed low volumes and high volatility over the last 7-8 sessions. The Sensex has shed over 500 points since April 25 amid risk aversion ahead of election results on May 16.
The market is likely to remain nervous till final election results come. Participation would not be heavy. Investors are booking positions and would wait to see election outcome.Foreign institutional investors continue to bet on Indian stocks, but the buying momentum has slowed down over the last few sessions. FIIs bought shares worth Rs. 119 crore on Wednesday. Year-to-date, they have invested over $5 billion in equities.
36 stocks traded higher on the Nifty today. Aluminium maker Hindalco was the top gainer, up 2.7 per cent, followed by drugmaker Cipla, which advanced 1.7 per cent. Tata Steel and Kotak Mahindra Bank were up over 1 per cent too.Gail India fell over 2 per cent, while engineering major L&T traded 1.1 per cent lower.
Shares in Multi-Commodity Exchange of India (MCX) fell as much as 9.4 per cent, while Financial Technologies shares were locked down in lower circuit after falling 5 per cent this morning.
The sharp selloff came after the Mumbai police on Wednesday arrested Financial Technologies chairman Jignesh Shah in connection with the Rs. 5,500 crore-fraud at the National Spot Exchange or NSEL, which is a commodity exchange promoted by him.