Local stocks ended with modest losses in choppy trade on weak global stocks after strong mandate given to the ruling Narendra Modi-led NDA propelled the key indices to record high. The barometer index, the S&P BSE Sensex, lost 298.82 points or 0.76% at 38,811.39. The Nifty 50 index lost 80.85 points or 0.69% at 11,657.05. Shares of index heavyweight and cigarette major ITC dropped.
Trading for the day began on a strong note as election results showed the Narendra Modi-led NDA leading in early trends. Stocks extended gains in morning trade after election trends showed that Narendra Modi-led NDA is leading in over 300 seats. Key indices pared gains in volatile trade soon after scaling fresh record high in mid-morning trade. The Sensex scaled record high above the psychological 40,000 mark while the Nifty scaled fresh record high above the psychological 12,000 mark in mid-morning trade.
Stocks further trimmed gains in early afternoon trade. Shares regained strength in afternoon trade. Volatility ruled the roost in mid-afternoon trade as the key indices regained positive zone soon after erasing strong intraday gains. Indices dropped in negative zone in late trade.
Counting of votes is underway today, 23 May 2019. Latest trends showed that NDA is leading in 351 seats, while UPA is leading in 89 and others leading in 102 seats. The 2019 Lok Sabha polls for 542 seats were held from April 11 to May 19. A party or coalition needs 272 seats in parliament to form a government.
Coming back to today's trade, the S&P BSE Mid-Cap index shed 0.15%. The S&P BSE Small-Cap index fell 0.11%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1196 shares rose and 1317 shares fell. A total of 174 shares were unchanged.
Index heavyweight and cigarette major ITC lost 3.52% to Rs 289.
HDFC Bank fell 2.32%. HDFC Bank said that its board pproved sub-division of one equity share of face value of Rs 2 each to two equity shares of face value of Re 1 each. The announcement was made after market hours yesterday, 22 May 2019.
Wipro shed 0.32%. Wipro announced that it has developed a blockchain-based payment solution for Travacoin, a company specializing in an eponymous digital payment solution. Travacoin is a digital payment system which enables airlines to refund and compensate passengers in a timely manner when a disruption occurs. The announcement was made after market hours yesterday, 22 May 2019.
Bank of Baroda rose 1.03% after the bank's net loss narrowed in Q4 March 2019. Bank of Baroda reported net loss of Rs 991.37 crore in Q4 March 2019 compared with net loss of Rs 3102.34 crore in Q4 March 2018. Total income rose 20.02% to Rs 15284.59 crore in Q4 March 2019 over in Q4 March 2018. The result was announced after market hours yesterday, 22 May 2019.
The bank's gross non-performing assets (NPAs) stood at Rs 48232.77 crore as on 31 March 2019 as against Rs 53184.28 crore as on 31 December 2018 and Rs 56480.39 crore as on 31 March 2018. The ratio of gross NPAs to gross advances stood at 9.61% as on 31 March 2019 as against 11.01% as on 31 December 2018 and 12.26% as on 31 March 2018.
Overseas, European shares were trading lower amid ongoing US-China trade concerns and political uncertainty across the EU. Politics are a central focus as voting in the EU elections begins in the UK and the Netherlands. Brexit uncertainty also continues to weigh.
Asian stocks fell on Thursday as worries over US-China tensions grew. The US said it will impose trading restrictions on Chinese telecoms giant Huawei from August 19. A private survey suggested that Japan's manufacturing contracted in May. The Markit/JMMA flash purchasing managers' index fell to 49.6 in May from 50.2 in the previous month.
US stocks finished lower Wednesday as lingering trade woes overshadowed the release of the minutes from the Federal Reserve's policy meeting that was largely interpreted as accommodative.
Minutes for the rate-setting Federal Open Market Committee's April 30-May 1 meeting indicated that the voting members agreed the current accommodative policy can remain for now and that they were comfortable with the wait-and-see approach. They were, however, split on whether higher rates were necessary if the economy continued to evolved along the predicted path while others argued that higher productivity could indicate more economic softness than the low unemployment rate suggests.
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