Stock exchanges BSE and NSE would be shut on Monday, May 20, on account of elections in Mumbai, the financial capital of India. A total of 13 parliamentary constituencies will go on poll including Mumbai North, Mumbai North-West, Mumbai North-East, Mumbai North-Central, Mumbai South-Central and Mumbai South; other than Maharashtra's Thane, Kalyan and Palghar in the fifth phase of the ongoing Lok Sabha elections. There would be no trading either in cash market or in F&O segment -- this includes equity, commodity, or currency contracts.
That said, BSE and NSE would conduct a special live trading session tomorrow, May 18, to test preparedness for handling unexpected disasters.
"Members are requested to note that Exchange shall be conducting special live trading session with intra-day switch over from Primary site to Disaster Recovery site on Saturday, May 18, 2024 in Equity and Equity Derivatives segments," the exchange stated in a recent release.
The special session would be divided into two parts — the first session would begin at 9:15 am and run till 10 am. Trading in this session would be done from the primary site. In the second session from the disaster recovery site, trading would be held between 11:45 am and 1 pm.
The stock market has turned jittery of late. If the market falls before the general election outcome, one can expect a rally post-result, said Sunil Damania, Chief Investment Officer at MojoPMS.
"But if there is no meaningful correction, the market may behave like in 2019, where indices moved down post-election results. Indian market valuations are rich, and that may keep the upside capped. Post-election, the market will start speculating on the budget announcement. This will also keep marketmen busy. Hence, we sense that in the next couple of months market will likely remain volatile," he said.