Today is a holiday for Indian stock markets as Maharashtra is set to go to the polls for the state assembly. Currently, the BSE and NSE have closed all trading for equity and shares, as well as trading in derivatives and securities lending and borrowing segments. This shutdown is among the 16 trading holidays planned for 2024, 14 of which have already been implemented. The last market shutdown was conducted on November 15, 2017, for Guru Nanak Jayanti, and the next was on December 25, 2017, on the Christmas occasion.
The Maharashtra Assembly Election 2024 is scheduled in one phase for all 288 seats, and 4136 candidates are in the field. The voting is going on today, while the counting of votes is expected to take place on November 23. This electoral event, in particular, has led to a shutdown not only of the stock market but also of the commodities markets. The Multi Commodity Exchange (MCX) will remain closed for its morning session from 9 AM to 5 PM, though it will reopen for evening trading from 5 PM to 11:55 PM.
Last trading day before holiday: Mixed fortunes for Indian market indices on Tuesday. The BSE Sensex was up on the day, up 0.31% or 239 points to 77,578.38, and the Nifty 50 was up 0.28% or 64.70 points to 23,518.50. But, these positive implementations were achieved after early oscillation and today in the daily chart structure the Nifty50 with a red-bodied candle and long upper wick imply market’s heed.
This is true because investors have had some concerns about the market, mainly in the recent past. The Nifty has fallen roughly 10% since its high on September 27, 26,277, putting it in correction territory. This level means a bear market in Dalal Street when reduced to a further 20% of the peak. In the last three trading days till Tuesday, while the Nifty tried to regain above the 200-day exponential moving average during Tuesday’s trading only, it failed to sustain, showing the current scenario of the market.
Foreign portfolio investors (FPIs) have remained bearish in November by pulling out money from the Indian markets after they had done so in October as well. They are withdrawing up to Rs 22,420 crores in the first half of November alone painting a picture of foreign investors being very careful. Market participants focus on this trend which affect market conditions and its liquidity levels.
People are just hoping that the markets will reopen, and they are evaluating the situation in the economy in order to make the necessary preparations to start trading again on Thursday. Global factors such as the Maharashtra election results, the worldwide economic environment, and company results will exert an impact on the market sentiment upon reopening the market. The markets are advised to remain updated on these happenings and change their tactics when the markets are reopened.
