Stocks witness initial jolt as TMC's electoral victory weighed on investor sentiment
Stocks on Monday witnessed an initial jolt as the massive electoral victory by the TMC in Bengal weighed on investor sentiment. However, buying support in metals, FMCG and auto counters helped benchmark indices recover from their lows to close with marginal losses.
The 30-share Sensex, which had collapsed more than 750 points during intra-day trade, recovered to finish with a drop of only 63.84 points. The broader Nifty closed 3.05 points, or 0.02 per cent higher at 14634.15.
It was a weak beginning for stocks as the huge victory of the TMC in Bengal and the NDA’s poor performance in other states such as Tamil Nadu and Kerala led to views that the ruling party in the Centre would face stiff challenge from regional parties. It also forced investors to re-assess the potent power of the BJP juggernaut, especially with polls due next year in Uttar Pradesh.
However, stocks overcame these apprehensions and recovered from their lows.