Moneycontrol News
In what was anticipated to be a day of bloodbath on D-Street, a trend reversal in the last few hours of trade helped Indian shares close on a positive note.
An abrupt resignation by RBI governor Urjjit Patel late on Monday, along with jitters among investors who bet on a stable government added to the negative sentiment.
In fact, overnight, the Nifty futures on Singaporean Exchange fell 450 point as well, bracing investors for a similar impact here.
However, some clarity emerging on single party getting a majority in all states could have aided sentiment on the markets.
"The markets are forward looking & had discounted the anti-incumbency wave in the Hindi heartland. The results of MP and Rajasthan being so close are positive for the BJP. In the end we are 4 months away from the general elections where the call is Modi magic will work,” Sanjiv Bhasin, executive vice president, markets and corporate affairs at IIFL told Moneycontrol.
Patel’s shock exit from the central bank also pushed investors to dump their stocks in the morning trade.
“RBI Governor resignation also saw a knee-jerk reaction being bought into solely for the reason that the new Governor would be more communicative, responsive & will have serious interaction to improve the monitory outlook which was grappling for tight liquidity after the shadow bank problems of IL&FS,” Bhasin added.
Among sectors, pharmaceuticals, PSU banks, consumption, IT and automobiles, among others, were the big gainers. Meanwhile, the Nifty Midcap index closed with gains of 2 percent.
At the close of market hours, the Sensex was up 190.29 points or 0.54% at 35150.01, while the Nifty was up 60.70 points or 0.58% at 10549.20. The market breadth was positive as 1623 shares advanced, against a decline of 771 shares, while 139 shares were unchanged.
Yes Bank and Sun Pharma were the top gainers, while HDFC Bank, Bharti Airtel, HPCL and IOC lost the most.
Stocks in the news
Bharti Airtel shares fell 2 percent after the General Tax Directorate of Niger ordered the closure of the offices of Airtel Niger, seeking tax amounts that have been disputed by Airtel Niger. However, the stock managed to cut some losses later on.
Tata Consultancy Services shares climbed 1 percent after due to a sharp depreciation in Indian currency and the launch of new solution for airline industry.
Shares of Titagarh Wagons rose 8 percent after the company won an order worth Rs 1,560 crore.
Share price of Zensar Technologies gained 5 percent after company got selected by EBRD for infrastructure and network services.
Share price of Quess Corp gained 12 percent after promoter increased its stake in the company.
Share price of United Bank of India gained 2 percent on the back of a plan to raise capital.
Global News
European stocks were higher as US and China tried to bat for further trade talks. Stoxx 600 was up around 0.92 percent.
Stocks in Asia were mixed due to a volatile session on Wall Street. The Shanghai composite rose 0.37 percent to close at around 2,594.09 while the Shenzhen composite advanced 0.853 percent to finish the trading day at about 1,343.90.
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