Govindraj Ethiraj

Stock markets are experiencing heightened jitteriness, mostly transmitted by the ruling BJP party’s own jitteriness, possibly because it was not confident of hitting the stretched target of 400 seats it had set for itself

Pre-election results jitters have now set into the markets which is reasonably logical and to be expected despite a victory priced into the market already

The stock markets ended lower on Tuesday with volatility rising to a 15-month high amid the ongoing national elections. The Nifty Volatility Index rose for the ninth consecutive session to close at 17.01, a 15-month high

Volatility levels rise amidst general elections and a rising VIX levels could also trigger short term bearishness according to analysts so the markets will be in the jittery zone for some time.

A market fall on Friday was blamed on a news report suggesting that there may be increased capital gains taxes on incomes from sale of shares

The US Federal Reserve held onto interest rates as was expected on Wednesday and on Thursday overnight, Wall Street was holding in the positive territory setting the trend for Dalal Street on Friday

The markets are still running on sound momentum but there is some underlying nervousness that is creeping in which is expected till the results of general election are announced on June 4

The overall cues, including from Asian markets were strong but the momentum was largely thanks to the banks, private and public. Both stock indices meanwhile have begun inching back to their lifetime highs. 

The markets were riding a wave all this while on the back of confidence and determination that there will be continuity with an even stronger mandate. The events of the last few weeks suggest while the mandate may still be in sight, the ruling party itself appears jittery.

The stock markets gained for a fifth consecutive session on Thursday. The big winners were earnings driven and included Axis Bank and Nestle India and SBI hit a fresh all-time high