THE regulator for the securities market in India, the Securities and Exchange Board of India (Sebi) and stock exchanges have enhanced their surveillance measures to curb possible manipulative practices as well as excessive volatility in the market on Thursday (23) when the general election results will be announced.
Markets are likely to witness significant movements tomorrow (23), especially after a rally on Monday (20) following exit polls showed that the prime minister Narendra Modi’s Bharatiya Janata Party (BJP)-led NDA is expected to come back to power.
Surveillance and monitoring of markets have been beefed up by Sebi and stock exchanges for the trading session on Thursday (23), according to a senior official.
Increased monitoring would help in keeping a tab on possible manipulations and increased volatility in the markets.
Manipulators tend to exploit such volatile situations in the stock markets.
Movements in Nifty futures and options on the Singapore exchange would be closely monitored.
Trading in Singapore stock exchange starts much before Indian markets open and their trends generally have an impact on domestic markets.
The results of the seven-phase polls for 542 seats would be announced on May 23.
Deepak Jasani, head of retail research at HDFC Securities, said: "Markets could remain volatile on Thursday awaiting results which could take time given the higher proportion of VVPAT (Voter Verified Paper Audit Trail) votes to be manually counted."
On Monday (20), the benchmark Sensex zoomed over 1,422 points and the Nifty surged 421 points after most exit polls showed that the Narendra Modi-led NDA is returning to power with a thumping majority in the elections.
(PTI)
Bob Blackman MP speaks during the event
Pope Francis greets Narendra Modi on the sidelines of the G7 summit near Bari, Italy, in June last year, as Italian prime minister Giorgia Meloni and then British prime minister Rishi Sunak look on