Market Close: Benchmark indices ended lower on May 23 as they wiped out all its intraday gains after hitting record highs in the morning trade.
At close, the Sensex was down 298.82 points at 38811.39, while Nifty was down 80.85 points at 11657.05. About 1182 shares have advanced, 1303 shares declined, and 170 shares are unchanged.
IndusInd Bank, Zee Entertainment, Adani Ports, Grasim Industries and Cipla were among major gainers the Nifty, while losers were Vedanta, Eicher Motors, ITC, Hindalco and Bajaj Finserv.
Among sectors, except infra (up 1 percent) all other sectoral indices ended in red led by FMCG, energy, metal, IT, auto and pharma.
In the short term, there may be some good euphoria due to the strong mandate given to PM Modi and we can see 12,500 on the Nifty getting hit soon. We believe this rally should be used to reduce any excess equity exposure that you may have in your portfolio. Hence, don't be very aggressive in buying at present levels. Stick to your existing financial plans and SIPs, said Vijay Kuppa, Co-founder, Orowealth.
"You will get an opportunity to buy more aggressively sometime in the near future. Reality regarding poor company earnings, expensive valuations and other macro stresses can ensure a slide down by ~10% to 11,200 levels within the next 12 months. This fall would be an opportunity to again load up on equity before the market begins its next upward journey, he added.
Market Update: Benchmark indices wiped out all its intraday gains and trading lower after hitting record highs in the morning trade.
At 15:06 hrs IST, the Sensex is down 263.35 points or 0.67% at 38846.86, and the Nifty down 67.40 points or 0.57% at 11670.50. About 1140 shares have advanced, 1261 shares declined, and 143 shares are unchanged.
Rupee at day's low: The Indian rupee erased all its morning gains and trading lower by 19 paise at 69.85 per dollar versus previous close 69.66.
China says US needs to correct wrong actions to continue trade talks
The United States has escalated trade frictions greatly, and increased chances of a global economic recession, spokesman Gao Feng said at a weekly briefing, adding that Beijing will take necessary steps to safeguard Chinese firms' interests.
We expect another 5-8% kind of gains in Nifty/Sensex and much better upside in mid-cap/small-cap over the next few months. We believe that a large part of the new government policy would depend upon attracting foreign direct and portfolio investment to fill in the resource gap domestically. Thus, one could see some supporting policy moves on that front by the government to encourage household savings and attract capital market investments, said Gaurav Dua, Sr VP, Head – Strategy & Investments, Sharekhan by BNP Paribas.
With the probability of last government retaining its power the kind of euphoria markets are creating I would first like to caution investors to stay calm. Rising markets make the stocks expensive, and hence it would be not the right time to jump in. Nevertheless, it is also recommended that investors hold on to their investments and wait for their financial goals to achieve, said Jimmy Patel - MD & CEO, Quantum Mutual Fund.
Today's market reaction is reaffirmation of exit polls. But now the market will consolidate around current levels and some kind of profit booking will be seen, Nilesh Shah, Envision Capital said in an interview to CNBC-TV18.
The market turned volatile with a positive bias after hitting all-time highs. The Nifty50 climbed over 12,000 and the BSE Sensex crossed 40,000 levels intraday.
Shah said there could be similar situation like 2014 when Nifty hit 7,500 levels and then saw consolidation around 7,200-7,300 levels followed by strong run.
Among sectors, he said consumer remains top favourite, which can be further broken into consumer staples and discretionary.
“The general election results are almost out now and the electorate has given a clear & decisive mandate to Prime Minister Modi. It is very important to have a stable government at the Centre which can derive the country into a strong economic growth, said Lav Kumar, Head- Product & Business Development at LIC Mutual Fund.
The pace of much needed reforms in various sectors will gain pace & the growth rate will accelerate. We believe the Indian economy in 2019 will keep growing faster than 2018 due to the demographic young population and their demand for better lifestyle, goods and services. The clear policy direction & ease of doing business will not only bring foreign direct investments but also create the environment of entrepreneurship, he added.
Buzzing: Shares of ITI gained 3 percent on May 23 after it signed a Memorandum of Understanding (MoU) with the Department of Telecommunications, Ministry of Communications, Government of India for the year 2019-20.
The market cooled off sharply after hitting a record high on short covering. "Nifty may go into consolidation as we had big move immediately after exit polls. It is quite possible that everybody has to digest that move but undercurrent of market is very good," Hiren Ved, Director & CIO at Alchemy Capital Management told CNBC-TV18.
The 30-share BSE Sensex rallied more than 1,000 points in morning, but came off its highs in late morning deals to trade 149.10 points higher at 39,259.31 and the Nifty50 rose 54.40 points to 11,792.30 at the time of publishing this copy.
"If we really see, the market did make a big move immediately after exit polls. As actual results are inline or better than average of exit polls, the sentiment is good and direction is positive," he said.
He believes, now action should shift from Nifty to broader market. "We are going to see foundation that led for broader market which will start to participate now. Breadth of market will improve.
PSU banks rally 3-13%: PSU banks are prominent gainers on May 23 when the counting of votes for Lok Sabha elections indicated that BJP is set to form government again.
Hence, market experts believe that Monetary Policy Committee may cut repo rate in forthcoming policy meeting scheduled on June 3-6, which is the key reason for the rally in PSU banks.
Market off record high: Benchmark indices are trading off record high with Nifty below 11,800 level.
Rupee update: Indian rupee is trading flat at 69.67 per dollar against previous close 69.66.
D-St Buzz: Nifty PSU Bank zooms 7% led by BoB; Adani group stocks spikes, SBI at new 52-week high
Nifty PSU Bank spiked over 7 percent led by Bank of Baroda which zoomed 10 percent followed by State Bank of India, Punjab National Bank, Union Bank, Canara Bank, Indian Bank and Bank of India.
Market Update: Benchmark indices are off their record high with Nifty below 11,850 level.
The Sensex is up 282.83 points at 39393.04, while Nifty is up 87.40 points at 11825.30. About 1183 shares have advanced, 1024 shares declined, and 119 shares are unchanged.
The market touched record highs on election results day with the Nifty50 hitting 12,000 and BSE Sensex 40,000 levels intraday, though both indices came off their day's high. Current leads of more than 340 seats indicated that BJP-led NDA is expected to form government at Centre for second time in a row.
Index is at higher level but broader markets are not at same level, Nilesh Shah, MD at Kotak Mahindra Mutual Fund said, adding benchmark indices stocks are at high valuations, but opportunities are available in broader markets where broader indices may remain at same levels.
Now with uncertainty over government formation gone, the key focus would be on revival of investment (which was on backfoot due to elections) and consumption, he told CNBC-TV18.
There is no rationale construct in which the govt can allow the PSUs to make hefty profit out of govt-run programme. Two-wheelers and FMCG are the two biggest potential beneferies which stand to gain from a stock market perspective. Govt spending on infra was quite handsome and we will do get back to that. Don’t see any major upliftment in major infra spends, said Saurabh Mukherjea, CEO of Ambit Capital.
We will see the market trend up with a positive bias with a time horizon of 6-12 months. Financials will continue to dominate markets with some rumbling in capital goods, says Atul Suri, CEO-PMS, Marathon Trends.
Reliance Capital gains 4%: Reliance Capital will exit its entire stake in Reliance Nippon to Nippon Life. Nippon Life will make mandatory open offer at Rs 230 per share for Reliance Nippon stake