Uncertainty-led volatility drags market down; sensex falls 220 points

Mumbai, May 28 (UNI) As the market approaches election outcome on June 4, the volatility and uncertainty have also increased as the 30-share sensex took a hit of over 220 points to close at 75170.45 amidst profit booking at every level.

Starting on a strong note the BSE sensex opened 195 points up at 75585.4, a level that also remained day’s high. As the day progressed there was profit booking at every level and ultimately ended in a negative zone. The Nifty or the NSE index also suffered a loss of over 44 points to close at 22888.15 compared to 22932.8 yesterday.

According to data, the Foreign Institutional Investors (FIIs) sold equities to the tune of Rs 541 crore while the Domestic Institutional Investors (DIIs) bought worth Rs 922 crore in the last trading session.

According to sources in the trading community, the market is likely to remain in a range bound till Lok Sabha results are out. There is no clarity on the outcome of the elections as the incumbent as well as opposition claiming to have upper hand. FIIs or even the DIIs are adopting “wait and watch” strategy and no one is taking long position.

In the 30-share BSE sensex only 10 ended in green while 20 closed lower from their previous level yesterday. All indices including mid-cap and small-cap ended the day in red.

Major gainers included HDFC Bank, Divis laboratory, Dr Reddys, Grasim, Hindalco and Titan on NSE. While losers were RIL, TCS, Airtel, Bajaj Finance, Maruti Suzuki and Adani Eneterprises.

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