Sensex Volatility Surges: FPIs sell amid election uncertainty

Dalal Street witnessed continued volatility as the Sensex fluctuated nearly 1,000 points on Monday, with the India VIX reaching 21.5, a multi-month high. Market sentiment was impacted by poll-related uncertainties and foreign fund selling. The Sensex opened the week weakly, down nearly 200 points from Friday, hitting an intra-day low at 71,866 points before closing at 72,776, up 112 points. Foreign portfolio investors remained net sellers, while domestic institutional investors were net buyers. In May, foreign funds sold stocks worth around Rs 22,800 crore, while DIIs bought stocks worth nearly Rs 23,000 crore. Brokers noted that some foreign fund managers are moving money from India to markets like China and Hong Kong, which have shown recent upswings. Low voter turnout in the ongoing Lok Sabha polls is a concern, with markets awaiting data from the fourth phase for cues. The Sensex's recovery was driven by buying in HDFC Bank, ICICI Bank, and TCS, while selling in Tata Motors, Bharti Airtel, and SBI limited gains. Of the 30 Sensex stocks, 16 closed higher, while 14 closed lower, reflecting broader?market?trends.