Sensex Ends 140 Points Higher; Banking And Oil & Gas Stocks Witness Buying

Indian share markets ended their day on a positive note today ahead of counting of Lok Sabha Election 2019 to be done tomorrow.

Gains were largely seen in the banking sectoroil & gas sector, and capital goods sector.

At the closing bell, the BSE Sensex stood higher by 140 points (up 0.4%) and the NSE Nifty closed higher by 28 points (up 0.3%).

The BSE Mid Cap index ended down by 0.2%, while the BSE Small Cap index ended the day up by 0.5%.

Asian stock markets finished on a mixed note as of the most recent closing prices. The Hang Seng stood up by 0.2% and the Nikkei was trading up by 0.1%, while the Shanghai Composite was trading down by 0.5%.

European markets were trading on a positive note. The FTSE 100 was up by 0.4%. The DAX was trading up by 0.3%, while the CAC 40 was up by 0.1%.

The rupee was trading at 69.69 to the US$ at the time of writing.

Speaking of Indian share markets, if the India Volatility Index (VIX) score is anything to go by, we are in for a turbulent ride ahead.

The VIX stood nearly at a 4-year high today.

The India VIX Index measures the volatility expected over the next 30 days. It touched an all-time high this month.

Market Volatility Highest in Years

Market Volatility Highest in Years

 

Uncertainty over the general elections, trade war threats between US and China and rising crude oil prices have all contributed to widespread fear among investors.

While the 2018 correction was mainly due to corporate governance issues back home, the threat of macro issues looms large in 2019.

For you, dear reader, it is important to ignore the short-term noise of the mainstream media.

While the volatility index is high, it is no indicator of the market direction. The index was high during 2014 as well, prior to the elections. Post that we had a multi-year bull run.

Co-head of research at Equitymaster, Tanushree Banerjee believes, safe stocks with strong fundamentals will do well regardless of the short-term volatility.

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To know more on what moved the Indian stock markets today, you can check out the most recent 

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