Stock Market Holiday, Lok Sabha Election Phase 5: BSE, NSE Closed On May 20, What To Expect On Tuesday?

Stock Market Holiday: BSE and NSE are not open for trading on Monday, May 20 due to the commencement of the fifth phase of polling of Lok Sabha Election 2024. Accordingly, trading in equities, equity derivatives, SLB and currency derivatives segments are shut.

This also comes after a special live trading session that was conducted on May 18, 2024, when Sensex ended at 74,005.94 up by 88.91 points or 0.12% and Nifty 50 closed at 22,502 higher by 35.90 points or 0.16%.

On Saturday, the top gainers were Nestle, Power Grid, Tata Motors, Adani Ports, and Hindalco. While top laggards were JSW Steel, M&M, Ultratech Cement, LTIMindtree and Maruti Suzuki.

On the special session of trading, Ajit Mishra - SVP, Research, Religare Broking said, "The benchmark indices experienced a dull special trading session but managed to end with marginal gains. After an initial rise, Nifty traded within a narrow range and eventually closed at 22,502. The sectoral performance was mixed, keeping traders engaged, with realty and pharma sectors posting modest gains, while banking and financial sectors remained subdued. Meanwhile, the broader market showed buoyancy, as midcap and smallcap indices increased between 0.4% and 0.8%."

For Tuesday, Mishra added, although the mixed performance among major stocks is limiting momentum in the index, the broader market's strength and gains in select heavyweights are providing ample opportunities. Participants should adjust their positions accordingly and maintain a "buy on dips" strategy.

As per Vinod Nair, Head of Research, Geojit Financial Services, the domestic market has sustained its recovery momentum from recent lows, bolstered primarily by positive signals from its global counterparts and better-than-anticipated earnings from index heavyweights. Throughout this week, mid- and small-cap stocks outperformed the broader index, despite concerns over high valuations. The broader market remained positive, driven by persistent buying in heavyweight sectoral stocks. Furthermore, a moderation in India's CPI and lower-than-expected inflation figures from the US Fed have stimulated investor confidence.

Nair further said that investors are expressing optimism regarding potential interest rate cuts in 2024, supported by favourable US consumer inflation data and improved jobless claims figures, which have also contributed to a surge in gold prices and strengthened the stock market rally. However, uncertainties persist regarding the timing of US Fed rate adjustments, with market participants eagerly awaiting clarity from an upcoming Fed chair speech.

He lastly said, "The release of PMI data for May from both the US and India next week will be closely monitored for further market insights. Amidst ongoing uncertainties surrounding election results and quarterly earnings, we anticipate continued volatility in the near term."

On May 20, as part of the Lok Sabha election phases, voting for approximately 695 candidates from 49 constituencies across six states and two Union territories will commence. This will be the fifth leg of polling and will take place in regions such as Odisha, Uttar Pradesh, Jharkhand, Ladakh, West Bengal, Maharashtra, Bihar and Jammu & Kashmir.

As per the Election Commission of India, a citizen of India can vote only if his or her name appears in the Voter List (also known as the Electoral Roll). Voters can also find information on Polling Booths, Contesting candidates, Election Dates & Timings, Identity cards and EVM.