FIRST TRADE: Indices slip amid growing uncertainties around general elections; Dr Reddy's Lab down over 3% after Q4 results

Stock market today: Domestic equity indices Sensex and Nifty50 traded in the negative territory in the morning deals, on Wednesday (May 8). The market is likely weighed by growing uncertainties around general elections, with heightened volatility expected to keep markets under pressure.

Last seen, the 30-scrip barometer declined 225.29 points or 0.31 per cent at 73,286.56 and NSE Nifty was down 59.05 points or 0.26 per cent at 22,243.45.

"The pressure on the market now is due to the uncertainty regarding the election outcome. There is lots of speculation in the media regarding this and this has added to the uncertainty in the market. The India VIX spiking 72 per cent from the April lows indicates that high volatility will persist for some more time. It is important to understand that VIX is based on Nifty index options prices. The spike in VIX is due to the rising volume of options trades. Many investors are buying put options to protect their portfolio in case of an unexpected election outcome," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Dr. V K Vijayakumar believes for long-term investors, the ongoing volatility and uncertainty present buying opportunities.

Furthermore, despite the uncertainty, the base case scenario is the return of the NDA to power. Once clarity emerges on this, the market will bounce back sharply led by high-quality large caps which are weak now due to big selling by FIIs. The FII selling in May till now has touched Rs 9194 crores dwarfing DII buying of Rs 5129 crores. This divergence is unlikely to last long.

Meanwhile, in the broader market, Nifty Midcap 100 and Smallcap 100 traded in red. High-beta Nifty Bank was down 0.28 per cent at 48,150.85. 

BUZZING STOCKS

Indraprastha Gas shares were up over 4 per cent after the company released its Q4 numbers. 

Navin Fluorine shares were up over 1 per cent after the company reported better-than-estimated Q4 results.

IGL shares were up over 5 per cent after Jefferies raised the target price.

Max Financial Services shares were up over 2 per cent after the company posted its Q4 results.

Conversely, Dr Reddy's Lab shares were down over 2 per cent after the company posted Q4 results.

United Breweries shares were down over 3 per cent after the company reported its Q4 results. 

Pidilite Industries shares were down over 4 per cent after the company registered mixed Q4 results. 

Voltas shares were down over 6 per cent after the company posted operationally weak Q4 numbers.

Jindal Saw shares were down over 5 per cent after the company posted Its Q4 results. 

GLOBAL MARKETS 

Asian stocks lacked direction on Wednesday, while the dollar remained firm despite lower U.S. Treasury yields as markets assessed mixed signals from U.S. policymakers and economic data on the path for Federal Reserve interest rates.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.19 per cent, weighed down partly by declines from mainland Chinese blue chips. However, Hong Kong's Hang Seng rose 0.52 per cent.

(With inputs from agencies.)

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