Key benchmark indices logged strong gains on last trading day of the week on steady buying demand in index pivotals. Sentiment was boosted by an overnight slide in crude oil prices. Narendra Modi-led NDA's thumping victory in Lok Sabha polls also supported buying. A strong mandate for the NDA could mean that economic reforms would be decisively implemented. The Sensex settled above the psychological 39,000 mark after moving above and below that level in intraday trade. The Sensex and the Nifty, both, settled at record high.
Intraday volatility was high. Local stocks drifted higher in early trade on buying demand in index pivotals. A steep slide in crude oil prices also boosted investors sentiment in early trade. Key indices trimmed gains in morning trade. The indices once again regained strength in mid-morning trade. Stocks extended gains thereafter and hit fresh intraday high in late trade.
The barometer index, the S&P BSE Sensex, gained 623.33 points or 1.61% at 39,434.72, a record closing high. The index hit high of 39,476.97 and low of 38,824.26 in intraday trade.
The Nifty 50 index gained 187.05 points or 1.6% at 11,844.10, a record closing high. The index hit high of 11,859 and low of 11,658.10 in intraday trade.
The S&P BSE Mid-Cap index rose 2.01%. The S&P BSE Small-Cap index rose 2.42%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1834 shares rose and 689 shares fell. A total of 157 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Realty index (up 4.18%), the S&P BSE Telecom (up 3.56%) and the S&P BSE Industrials index (up 3.56%) outperformed the Sensex. The S&P BSE IT index (up 0.34%), the S&P BSE Energy index (up 0.53%), the S&P BSE FMCG index (up 0.68%) underperformed the Sensex.
ICICI Bank (up 5.09%), L&T (up 4.6%), Bharti Airtel (up 4.42%), Vedanta (up 4.2%) and Tata Motors (up 4.09%) edged higher from the Sensex pack.
NTPC (down 0.54%), TCS (down 0.2%) and Hindustan Unilever (down 0.1%) edged lower from the Sensex pack.
Infosys rose 1.17%. Infosys during market hours today, 24 May 2019 announced that it has completed the formation of a strategic partnership with ABN AMRO in the Netherlands by acquiring 75% of the shareholding in their wholly owned end-to-end mortgage administration service provider Stater N.V. This partnership strengthens Infosys' position as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies, and further enhances the company's strategy to help clients navigate their next digital transformation journeys.
Auto stocks gained. Ashok Leyland (up 5.46%), Tata Motors (up 4.09%), Escorts (up 5.33%), Maruti Suzuki India (up 2.36%), Mahindra & Mahindra (M&M) (up 3.82%), Eicher Motors (up 2.49%), Bajaj Auto (up 0.31%), Hero MotoCorp (up 3.37%) and TVS Motor Company (up 2.37%) gained.
Cipla rose 1.22% after the company signed an agreement on Thursday to acquire 26% stake on a fully diluted basis in AMPSolar Power Systems, which is formed for the purpose of setting up a captive solar power project in Maharashtra. The company will invest Rs 12.90 crore for the acquisition, which will be through share purchase, subscription of equity shares and compulsorily convertible debentures. The announcement was made after market hours yesterday, 23 May 2019.
Sun TV Network fell 3.25% after the company's net profit fell 2.3% to Rs 283.07 crore on 24% increase in net sales to Rs 888.88 crore in Q4 March 2019 over Q4 March 2018. The subscription revenues for the quarter rose by about 4% at Rs 319.77 crore, as against Rs 308.84 crore for the corresponding quarter ended 31 March 2018. EBITDA for the quarter ended 31 March 2019 rose about 16% at Rs 608.40 crore as against Rs 522.40 crore for the previous quarter ended 31 March 2018. The result was announced after market hours yesterday, 23 May 2019.
Eros International Media rose 7.6% after consolidated net profit rose 14.72% to Rs 69.74 crore on 5.95% decrease in net sales to Rs 224.56 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 23 May 2019.
The Indian electorate gave a decisive verdict in favour of the BJP and its allies yesterday, 23 May 2019. Latest trends showed that the Prime Minister Narendra Modi-led NDA is leading in 353 seats, while UPA is leading in 92 and others leading in 97 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.
In commodity markets, crude oil prices plunged on Thursday, as trade tensions dampened the demand outlook. Brent for July 2019 settlement tumbled $3.23 a barrel or 4.55% to settle at $67.76 a barrel. The slide in global crude oil prices will help India in containing inflation, current account and fiscal deficits. India imports about 80% of its crude oil requirement.
Overseas, European shares advanced on Friday. Brexit developments will be closely monitored by investors, with British Prime Minister reportedly expected to announce a departure date on Friday. Asian shares were mixed as investors remained worried over trade tensions between the United States and China.
US stocks finished lower Thursday as big losses for the technology and energy sectors dragged on the broader market amid signs that trade tensions between the U.S. and China are escalating.
US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a U.S.-China trade deal. The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products.
In economic data, IHS Markit said its flash index of U.S. manufacturers fell to a 9 1/2-year low of 50.6 in May from 52.6 in April, while the firm's services index dropped to a 39-month low of 50.8 from 52.7.
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