MAHARASHTRA: The Indian stock markets, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), are closed today in observance of the fifth phase of parliamentary election voting in Mumbai.
The decision to close the markets was taken to ensure that citizens, including those working in the financial sector, can participate in the electoral process. Trading will resume on Tuesday. The next holiday is scheduled for June 17 for Bakrid.
The six seats in Mumbai where polling is underway are Mumbai North, Mumbai North West, Mumbai North East, Mumbai North Central, Mumbai South, and Mumbai South Central. The other constituencies of Maharashtra that are part of the ongoing election in the fifth phase include Dhule, Dindori, Nashik, Kalyan, Palghar, Bhiwandi, and Thane.
Last Saturday, the stock exchanges organized a special session to test their disaster recovery mechanisms for trading in which investors showed enthusiasm and the market closed on the green mark. On Saturday, the BSE Sensex closed at 73,959 points with a rise of 42 points, while the Nifty of the NSE closed at the level of 22,502 points with a gain of 35.91 points. Shares of Nestle India, Power Grid, Tata Motors, Hindalco, ONGC, Divis Lab, and TCS saw a rise.
According to market experts, Indian markets are still facing selling pressure from the continuous selling by foreign institutional investors. Experts point out that the ongoing elections are making investors cautious.
"Indian markets are recovering from the election jitters but investors are still investing cautiously. Expect this positive sentiment to consolidate, but a decisive break upward, above the previous all-time high levels, will happen once the election results are announced by June 4th late evening" said Ajay Bagga, Banking and market expert.
The selling spree in Indian stock markets by foreign portfolio investors (FPIs) turned aggressive in May, partly attributable to a strong US dollar, sticky inflation particularly in the food segment, and poll outcome-related anxieties.
With over 10 days more to go in May, the latest data from National Securities Depository Limited (NSDL) showed that foreign investors sold Indian stocks worth Rs 28,242 crore.