Benchmarks Sensex and Nifty 50 ended closed flat after a choppy trading session on May 17. Metal and mining stocks posted the highest gains, while financial services and IT stocks were the biggest laggards.

"The prime minister has hinted about a sharp rally in the market after June 4th. The market is likely to move up before the election results since the market is smart enough to anticipate the results," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar said that the Q4 results are generally good with decent revenue and PAT growth. He advised investors to keep an eye on the banking, automobiles (particularly two-wheelers), capital goods, real estate, and pharmaceutical sectors since they are likely to lead in an election results-related rally.

At close, the Sensex was down 53 points or 0.07 percent at 73,953 and the Nifty 50 was up 27 points or 0.1 percent at 22,529. In the broader market, the BSE Midcap index was up 0.3 percent while the BSE Smallcap index shed 0.2 percent.

The volatility index India VIX rose over six percent to 21.82. Market experts attribute the rise in volatility to the uncertainty over election results, expecting markets to remain volatile until the results are announced.

"As the election phases conclude, sentiment is also improving. I believe the market is factoring in some positive news related to the elections. The indices can hit a new high before the elections," said Mehul Kothari, Assistant Vice-President of Technical Research at Anand Rathi Share and Stock Brokers. He expects Nifty 50 to hit 23,000 before election results are out.

China's Property Stimulus, West Asia Political Uncertainty Propel Nifty Metal Higher

On May 17, Beijing gave the green light to authorities to buy some residential projects and turn them into public housing. They will also be able to purchase land from struggling developers. The People’s Bank of China unveiled a $42 billion re-lending fund to support such purchases from local state-owned enterprises.

"Gold and silver prices hit a record high on the domestic front as increased geopolitical tensions in the Middle East boosted safe-haven demand, while a broader rally across metal markets also spilled over into bullions," Motilal Oswal said in a research report.

There are a lot of questions regarding development and stability in the Middle East after the news of Iran's helicopter crash, which killed Iranian President Ebrahim Raisi and his foreign minister over the weekend.

On the other hand, economic data points from the US this month have been reported lower than expectations weighing on the Dollar index and supporting the precious metals pack, Motilal Oswal said.

Mehul Kothari said that if the Nifty Metal index closes above 10,000, it could rise another 5-10 percent. He identified support for the index at 9,200. "As long as the Nifty Metal index holds above 9,200, it remains a 'buy on dip'," Kothari said.

The Nifty Metal index has gained over 45 percent in the past six months, outperforming Nifty 50 by a huge margin which gained 15 percent during the same period. On May 17, the index closed almost 4 percent higher at 9981 led by Tata Steel and Hindalco.

Meanwhile, Nifty IT declined 0.2 percent on concerns over US interest rates staying higher for longer after some Federal Reserve officials appeared cautious about inflation.