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India’s financial markets have been witnessed extreme volatility since the onset of May 2024 – the month that marks the crucial last phases of polling for the high stakes’ Lok Sabha elections, followed by the counting of votes and results on June 4, 2024. A lower voter turnout so far in poll phases has raised concerns whether Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) and its allies can achieve the landslide victory predicted by opinion polls last month.
Investors had already priced market stability over BJP returning to power, however, the current volatility has raised concerns of uncertainty. This has subsequently led to a significant change in the market’s fear gauge index — ‘India VIX’—which gained 386 percentage points during last week to touch 18.47, a 19-month high.
In the week ended May 10, the frontline indices logged their worst since mid-March, dropping about 1.8 per cent each and also snapped two straight weeks of gains. On a weekly basis, the BSE benchmark tanked 1,213.68 points or 1.64 per cent, and the Nifty 50 declined 420.65 points or 1.87 per cent. So far in May, Sensex and Nifty 50 have swung 2.67 per cent and 2.68 per cent respectively.
D-Street movers in 7 sessions of May
In terms of changes in stock prices, Dalal Street’s top five best-performing stocks in the first sessions of May include Tata Group’s largecaps such as Tata Motors and information technology (IT) giant TCS. However, fast-moving consumer goods (FMCG) major HUL has merged as the top Nifty 50 gainer in the first seven market sessions this month. FMCG and auto stocks have witnessed the biggest gains in their respective prices so far in May 2024.
On the other hand, index heavyweights including banking majors ICICI Bank, HDFC Bank and Axis Bank have been among the top Nifty 50 losers so far this moth. The banking index has emerged as the top drag over weak March quarter results and volatility due to the Reserve Bank of India’s orders against bank majors.
Nifty 50’s top 5 best-performing stocks in 7 sessions of May:
Hindustan Unilever Ltd (HUL): The FMCG giant has emerged as Nifty 50’s best-performing stock that clocked gains of 5.92 per cent in its stock price over the last seven sessions, according to Bloomberg data.
Tata Consultancy Services (TCS)
Tata Motors Ltd
Hero MotoCorp Ltd
Mahindra & Mahindra Ltd
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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Published: 11 May 2024, 07:43 PM IST
