The market may advance on Friday as uncertainty surrounding Lok Sabha elections faded after Narendra Modi-led NDA registered landslide victory. A steep slide in crude oil prices may also boost investors sentiment.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 60.50 points at the opening bell.
The Indian electorate gave a decisive verdict in favour of the BJP and its allies. Latest trends showed that Bhartiya Janta Party (BJP) won 291 seats and was leading in 12 seats. The Indian National Congress (INC) won 51 seats. The 2019 Lok Sabha polls for 542 seats were held from April 11 to May 19. A party or coalition needs 272 seats in parliament to form a government.
Overseas, Asian shares were mixed on Friday as investors remained worried over trade tensions between the United States and China.
In US, stocks declined as investors were concerned the trade war may last much longer than anticipated. Data showed that manufacturing activity in the US grew at its slowest pace since September 2009 this month.
In commodity markets, crude oil prices plunged on Thursday, as trade tensions dampened the demand outlook. Brent for July 2019 settlement tumbled $3.23 a barrel or 4.55% to settle at $67.76 a barrel.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,352.20 crore on 23 May 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 593.54 crore on 23 May 2019, as per provisional data.
Domestic shares ended lower on Thursday, 23 May 2019, as weak global cues triggered profit booking after a blockbuster rally in mid-morning trade. Prime Minister Narendra Modi-led NDA's thumping lead in the general elections propelled the Sensex above the psychological 40,000 mark and the Nifty above the psychological 12,000 mark in intraday trade. Modi's landslide victory boosted shares as investors expect his government will continue to pursue economic reforms. The Sensex fell 298.82 points or 0.76% to settle at 38,811.39. The Nifty 50 index fell 80.85 points or 0.69% to settle at 11,657.05.
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