Most experts feel that the optimism round political front is pushing markets higher but investors should tread with caution as any bad news could derail the rally amid high valuations
The Nifty50 created history during May series when it surpassed Mount 12K to hit a fresh record high of 12,041 on May 23 after National Democratic Alliance (NDA) secured a majority and paved way to the second term for Prime Minister Narendra Modi.
The index rose 2.6 percent in May series to close at 11,945, a fresh record closing high. The S&P BSE Sensex rallied 2.8 percent while NiftyBank rallied 6.7 percent in the same period.
The final tally on D-St for May 30: the Nifty50 rose 84 points to close at 11,945 while the S&P BSE Sensex rallied 329 points to end at 39,831.
Strong buying was seen in power, telecom, energy, finance, and IT stocks while profit-taking was seen in automobiles, metals, realty and consumer discretionary stocks.
The broader market underperformed benchmark indices as the S&P BSE Midcap index closed 0.4 percent higher while the S&P BSE Smallcap index was up 0.2 percent.
More than 50 stocks hit a fresh 52-week high on the BSE including Info Edge, Vinati Organics, Siemens, JustDial, IGL, V-Guard, IOL Chemicals and Birla Cotsyn among others.
Most experts feel that the optimism round political front is pushing markets higher but investors should tread with caution as any bad news could derail the rally amid high valuations.
“Indian bourses seem to be in a race with no looking back. Choppiness on D-Street has increased as Nifty aims to reach its previous highs by crossing 12,000. All eyes are on the Monetary policy next week and the implementation of strong reforms by the newly elected government,” Umesh Mehta, Head of Research, Samco Securities told Moneycontrol.
“The Street is pricing in the Modi government’s efforts to improve the economy and hence the markets are soaring higher. However, this frenzy will be short-lived as the indices are currently trading at very high multiples and any adverse news on the local or global front can lead to severe correction in the market,” he said.
Top Sensex gainers include Bajaj Finance (up 2 percent), Bharti Airtel (up 2.3 percent), and NTPC (up 3.4 percent).
Top Sensex losers: Sun Pharma (down 2.3 percent), M&M (down 1.6 percent), and IndusInd Bank (down 1.3 percent).
Stocks in news:
Most global brokerage houses slashed price target for M&M post Q4 show. CLSA downgraded the stock and cut target price by 19 percent on likely underperformance. M&M closed 1.6 percent lower and was also one of the top Sensex losers.
West Coast Paper gained 6 percent after the company decided to acquire a stake in International Paper APPM.
Shares of Tata Teleservices (Maharashtra) rallied more than 19 percent buoyed by its performance in the quarter ended March 2019.
Shares of Manpasand Beverages plummeted 10 percent after the officials of the company arrested for GST fraud were reportedly denied bail.
Shares of Gujarat Narmada Valley Fertilizers shed more than 6 percent after the company reported a 71.6 percent decline in profit for the quarter ended March 2019.
European markets trade higher as STOXX 600 registered its first gain in the last three days.Asian markets ended lower on the back of rising trade tensions between the US and China. Nikkei shed 0.29 percent at 20,942.53, Shanghai Composite was down 0.31 percent at 2,905.81 while Kospi added 0.77 percent at 2,038.80.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.