Uncertain times see another day in red in the markets

24 May 2022 , 04:42 PM

Indian markets ended the day in red today.  NSE Nifty came down by 89.5 points over the previous day’s close. BSE Sensex came down by 236 points.  Top gainers today were Dr Reddy, HDFC and Kotak.  Top losers today were Divi’s Lab, Tech Mahindra and Grasim. Delhivery’s shares today got listed at a premium of 1.68 % over their IPO issuance price.

It can be seen that many of the stocks that were among the gainers the previous day, turned out to be among the losers the next day, and vice-versa. This indicates that much of the market movement currently is driven by the intention to take advantage of price movements to book profits. The long term investment perspective may be missing from the market. This is a natural market response to ongoing uncertainty and negativity regarding the state of Indian and global economy.

The news of Indian government restricting the exports of many commodities is not a favorable one for many companies.  The government is doing so as it tries to control rising inflation. Now reports are coming that the government may impose restrictions on sugar exports.  This news is going to weigh down on market sentiments tomorrow. The next day is more likely to be one in red than in green.