Mumbai:The market snapped 5-day losing streak and rallied a bit intraday but could not hold all gains till the end. After much of a struggle to hold 6700, the Nifty closed below it marginally. The Nifty ended the day at 6699.35, up 4.55 points while Sensex was up 41.23 points at 22445.12.
Investors look cautious and hesitant to buy ahead of the Lok Sabha elections results on May 16. Pankaj Vaish, Head South Asia Markets, Citigroup feels that the market has probably built in the fact that BJP will get 250 seats, thus if they get around 220 then there could be disappointment, which may result in a knee jerk sell-off.
Whereas he thinks a 273-plus may lead to a meaningful rally in the very short term. However, Richard Titherington, JPMorgan Asset Management expects inflows into emerging markets to improve in second half of the year. And despite the recent run up, Titherington is not looking to reduce exposure to India.
"We expect a stable NDA-led government to come to power," he said. While bullish on cyclicals, he advises reducing exposure to defensives in the Indian market. "We think India will continue to outperform its peers," he said. European stocks slipped in thin trade after soft Chinese manufacturing data, while simmering tensions in Ukraine underpinned safe-haven government bonds and gold.
Asian markets succumb to profit taking after China manufacturing data disappointed, contracting for another month at 48.1 in April while the simmering conflict in Ukraine kept most global markets subdued.
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