MUMBAI, May 5 (Reuters): The BSE Sensex edged higher on Monday,
recovering from a five-session losing streak as market heavyweights such
as Reliance Industries recouped, although sentiment remained broadly
weak ahead of the conclusion of elections later this month.
Global risk factors are also weighing on sentiment, with regional shares faltering on Monday after HSBC's final reading of China's April PMI contracted for a fourth consecutive month.
Although overseas investors have remained buyers of cash shares, they have turned sellers in index futures, totalling 2.43 billion rupees ($40.4 million) over the five previous sessions until last Friday.
Analysts broadly expect shares to remain pressured, and off the record highs hit late last month, ahead of the outcome of elections on May 16.
"Nifty is struggling near 6,700 level for the last four trading sessions. With mixed cues directing the market, there is an indecision seen at higher levels," said Rakesh Goyal, senior vice president, Bonanza Portfolio Ltd.
"After a strong one-sided rally witnessed in the last few weeks, we expect some consolidation. Nifty is likely to trade within 6,500-6,850 in coming sessions," he said adding that volatility could increase ahead of the election results.
The Sensex closed 0.18 per cent higher at 22,445.12, while the Nifty closed 0.07 per cent up at 6,699.35.
Global risk factors are also weighing on sentiment, with regional shares faltering on Monday after HSBC's final reading of China's April PMI contracted for a fourth consecutive month.
Although overseas investors have remained buyers of cash shares, they have turned sellers in index futures, totalling 2.43 billion rupees ($40.4 million) over the five previous sessions until last Friday.
Analysts broadly expect shares to remain pressured, and off the record highs hit late last month, ahead of the outcome of elections on May 16.
"Nifty is struggling near 6,700 level for the last four trading sessions. With mixed cues directing the market, there is an indecision seen at higher levels," said Rakesh Goyal, senior vice president, Bonanza Portfolio Ltd.
"After a strong one-sided rally witnessed in the last few weeks, we expect some consolidation. Nifty is likely to trade within 6,500-6,850 in coming sessions," he said adding that volatility could increase ahead of the election results.
The Sensex closed 0.18 per cent higher at 22,445.12, while the Nifty closed 0.07 per cent up at 6,699.35.
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