Sensex hits 40k; dips 1,314 pts from high by close; Nifty holds 11,650

During the day, Sensex and Nifty hit the levels of 40,000 and 12,000, respectively, for the first-ever time

Benchmark indices tumbled over 1,300 points from its intraday high as investors booked profits at higher levels that saw Sensex and Nifty hitting 40,000 and 12,000 levels, respectively, over optimism surrounding the National Democratic Alliance (NDA's) likely return to power after the 2019 Lok Sabha election.

The S&P BSE Sensex hit the 40,000 mark on Thursday, after trends showed Narendra Modi - led NDA sweeping to power in the Lok Sabha elections 2019. FOLLOW ELECTION RESULTS LIVE HERE

The Sensex recorded its sharpest intra-day fall in the past 11 years in absolute terms. The index closed at 38,811 levels - down 299 points fir the day and 1,314 points from intra-day high level of 40,125. In the process, the index posted its sharpest intra-day decline since January 21, 2008. Vedanta Limited, ITC, Tata Motors, HDFC Bank, Bajaj Finance led the list of losers. Out of the 30 BSE constituents, 16 ended in the red.

The broader Nifty50 index dipped 0.7 per cent to end the day at 11,657 levels. The market breadth was tilted in favour of sellers. About 920 stocks declined and 810 shares advanced on the NSE.

In the broader market, the S&P BSE MidCap index dropped 21 points, or 0.15 per cent, at 14,650 levels, while the S&P BSE SmallCap index concluded the day 16 points, or 0.11 per cent, lower at 14,353 levels.

Sectorally, all the indices on NSE, except Nifty Media and Realty, settled lower at the day's end, with Nifty FMCG bleeding the most 1.7 per cent, followed by Nifty Metal 1.48 per cent. The Nifty Bank index, which hit 31,000-level earlier in the day, dipped 118 points to 30,409 levels.

BUZZING STOCKS

IndusInd Bank shares surged 8 per cent to Rs 1,640 in early trade on Thursday on the BSE before ending the day 5 per cent higher on expectation that the bank would return to normalcy in terms of earnings momentum after the entire exposure to IL&FS was classified as non-performing asset (NPA) in the fourth quarter of fiscal 2018-19 (Q4FY19). READ MORE

Shares of Adani Group companies surged up to 14 per cent intra-day on the BSE on Thursday as trends showed the Narendra Modi-led National Democratic Alliance (NDA) leading the vote counts for the 2019 Lok Sabha election. READ MORE

5:03 PM

Arun Jaitley tweets

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Congratulations @narendramodi for your election as @PMOIndia. My best wishes for every success in your second term in office. I express my strong commitment to continue working with you in order to enhance the already solid and amicable relations between our two countries.

4:44 PM

EXPERT COMMENT | Anand Rathi, Chairman, Anand Rathi Group

Any strong and stable government is in a better position to push the robust economic reforms.  The country needs far reaching major reforms in the area of land, agriculture and labour.  New government is therefore expected to address these issues on priority.

 

The Reserve Bank of India should also look at the possibility of increasing liquidity and reducing the interest rate, in view of the low inflation in last few years.  The government also need to offer fiscal incentives in GST and income tax  to increase economic growth and employment.  There is imperative need to improve the ease of doing business particularly for the small and mid-size businesses and also reducing the corruption affecting the common people in the country.

 

It is hoped that the new government with its strong support both in Lok Sabha and Rajya Sabha would be able to address all such issues on top priority and help increase the economic growth of the country.

4:42 PM

Post Market analysis by Kotak Securities

The classic ‘BUY on expectation and SELL on news seems to have played out in today’s session. Some of the passive money that had come in the last three months at lower levels could be going out due to global worries. The strong election verdict is beyond expectation and long only money, both from FIIs and local investors will surely resume in the next few trading sessions. Rich valuations of Nifty closer to 12,000 levels (i.e. 19x Fw PE ) provides limited upside in large caps. There could be some near term concerns emanating from earnings downgrades that is taking place in the ongoing results season. With stability and visibility back in place we feel investors should focus more on Mid & Small caps rather than large caps.

4:24 PM

Vinod Nair, Head of Research, Geojit Financial Services Ltd on Lok Sabha results 2019

"The larger than mandate stimulated the market to a new high providing a solid pre-election rally of 11 per cent YTD. Since the final outcome is in-line with expectation, we can have a mild consolidation in the short-term. This is because neither the earnings nor the economy has started to pick up and unlikely to revamp immediately as it takes 1 to 2 quarters before stabilizing. These factors along with premium valuation and muted global trend will start to control the momentum of the market as optimism gets digested. Whereas, in the medium-term we expect a healthy momentum in H2FY20 led by Mid & Small caps as earnings growth returns with continuity in reforms & stability in global market."

4:22 PM

Ankur Maheshwari, CEO Equirus Wealth Management on Lok Sabha results 2019

“This is a very clear result. There will be stability from an economic point of view and this is highly positive for the markets. On the other hand, the Nifty trailing PE is close to 29 and this is not a cheap market. There is a trade war between the US and China. Systematic Transfer Plans are a good way of reducing risk in such circumstances. In terms of segments , mid and small caps have corrected strongly over the past 12-18 months. Such companies tend to rally in a bullish phase and hence investors should have some exposure to them.”

4:22 PM

Sanjay Chamria, VC & MD, Magma Fincorp on Lok Sabha election results

"The second term is a reflection of India voting for stability. The government needs to target bringing growth back to the economy as its one point plan. The government’s chief move in the financial sector should be to address the lack of money movement at banks and accelerate the flow of money in the system at large. Investors need to be incentivized to invest in the NBFC sector both on the equity and debt side, to enable short-term and long-term funding. MFs have around Rs 1.3 trillion exposure to NBFCs (including HFCs) about to mature over the next 3 months. NBFCs play a critical role in providing credit of around Rs 8.5 trillion to the marginalised and economically backward which is the backbone of the Indian economy. Truckers, drivers, small business owners, affordable home owners all rely on NBFCs for credit, thus making them a critical ingredient in the financial sector."

4:21 PM

NEWS ALERT | Outgoing cabinet & council of ministers' meeting tomorrow at 5:30 pm: CNBC TV18

Cabinet will pass resolution to dissolve 16th Lok Sabha

4:07 PM

L.K Advani praises Modi-Shah duo

4:03 PM

Nitin Gadkari address media after BJP registers thumping victory at Lok Sabha 2019 elections

- Opposition has a crucial role to play in a democracy, we should all work together now for the country's development.

- Prime Minister is not of any party, he is of the country; it was wrong to call him "thief".