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

12:32 PM

ELECTIONS AND MARKETS | Rusmik Oza, Head of Fundamental Research, Kotak Securities

Nifty and Sensex tested 12,000 & 40,000 mark today. Based on the leads it is evident that NDA is coming back with likely single majority for BJP. Valuation wise Nifty at 12,000 trades at ~19x on Fw PE basis. Hence we see limited upside potential in the Nifty in the near future. Part of the passive money that has come by way of ETFs in the last three months could move out if Nifty goes above 12,000 level. We see more value and upside in the Mid & Small Cap space hereon. With NDA coming back into power we can expect local investors to take comfort in the Mid & Small cap space with a longer 2-3 year horizon and inflows could resume in them. Based on our reading of BJP’s Manifesto and interim budget, we feel the following sectors could benefit the most in the next one year: capital goods, construction, building materials, corporate banks, power equipment, housing finance companies. Consumption stocks could take a back seat because of the slowdown in demand and rich valuations.

12:15 PM

Profit booking takes over, Sensex slips to 39,400 mark

12:14 PM

ELECTION AND MARKETS: Deepak Jasani, HDFC Securities

The outcome of Loksabha elections has driven the markets up, though later an expected profit-taking took place. While now speculation will be rife about the cabinet formation and policy pronouncements in terms of thrust areas, the outlook of FPIs in terms of flows into India will be important to watch and track. Some FPIs who were waiting for the final results to come in may jump in; however bigger flows will have to wait for lower levels or path breaking announcements.  Cyclicals could be back in favour being the recipient of public spend benefits. Cement, PSU stocks including Banks, Capital Goods, Realty could remain in favour, others like Consumption could wait for better cues from monsoon and rural income revival.

12:12 PM

Indiabulls Housing Finance gains

12:10 PM

EXPERT COMMENT | Dhiraj Relli, HDFC Securities

12:09 PM

NEWS ALERT | Govt has to improve ease of doing business: Rakesh Jhunjhunwala to CNBC TV18

12:07 PM

NEWS ALERT | BJP's Subhash Chand Baheria wins from Bhilwara, Rajasthan: CNBC TV18

12:04 PM

YES Bank gains more than 5%

12:03 PM

EXPERT COMMENT | Jagannadham Thunuguntla, Centrum Wealth

The thumping victory for BJP as per the early trends surpassing its winning tally of 2014 has pleasantly surprised even the bulls ... The continuation of policies and reforms is an added comfort ... The narrative should come back to employment, economy and earnings

12:02 PM

Anand Rathi on State Bank of India

SBIN has provided a breakout from the 10 years consolidation with a clear buy crossover in its daily, weekly and monthly MACD which is a big breakout. The probability of an upside from hereon increases as the Index has started to form higher tops with gaps which indicates that the breakout is with increases in volumes. The stop loss is Rs 328.20

11:58 AM

11:56 AM

EXPERT COMMENT | Sensex hits 40K: Amnish Aggarwal, Prabhudas Lilladher

Election Results are positive for the market as it gives a stable Govt for the next 5 years. However post initial euphoria, focus would shift to hardcore economic decisions and the manner in which slowdown and economy is handled in Modi2.0. we are positive on long term for the markets, our NIFTY target in a bullish scenario is 13000, for which growth rates need to catch up.

11:52 AM

Have negative view on Pharma, positive on IT, chemicals: Samir Arora to ET NOW

11:51 AM

EXPERT COMMENT: Sandip Sabharwal

11:51 AM

FMCG stocks trade mixed

COMPANY NAME	LATEST	HIGH	LOW	CHG (rs)	CHG(%)
VIKAS WSP	14.30	14.75	13.95	-0.35	-2.39
SANWARIA CONSUM.	8.28	8.47	8.24	-0.02	-0.24
VIKAS PROPPANT	14.00	14.00	14.00	-0.25	-1.75
FOODS & INNS	68.50	70.70	67.50	-0.55	-0.80
KWALITY	5.65	5.90	5.61	-0.08	-1.40
DABUR INDIA	388.85	390.00	384.20	3.70	0.96
MANPASAND BEVER.	105.35	108.95	104.50	1.65	1.59
HIND. UNILEVER	1778.70	1803.00	1770.80	12.55	0.71
L T FOODS	29.00	29.40	28.60	0.05	0.17
MARICO	362.55	369.65	361.80	-0.55	-0.15