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Sensex, Nifty scale new highs on fresh hopes from Modi 2.0

Benchmark Sensex and Nifty on Monday closed at another record highs as a renewed sense of positivity continued to dictate investor sentiment ever since the BJP won a landslide victory in the Lok Sabha polls.

PTI PTI
Mumbai Published on: May 27, 2019 17:50 IST
Representative Image
Image Source : PTI

Representative Image

Benchmark Sensex and Nifty Monday closed at another record highs as a renewed sense of positivity continued to dictate investor sentiment ever since the BJP won a landslide victory in the Lok Sabha polls.

The BSE gauge Sensex ended 248.57 points or 0.63 per cent higher at 39,683.29 -- a new closing high for the index.

While the broader Nifty gained 80.65 points or 0.68 per cent to settle at 11,924.75 -- a fresh closing peak for the NSE barometer.

Indian equities have been riding a wave of optimism as investors expect that a second term for the BJP-led National Democratic Alliance (NDA) will ensure continuation in reform measures initiated during the first term.

Analysts believe that though growing trade tensions between the US and China and weak global market cues did not have much impact on domestic markets in current scenario, the pattern may reverse going ahead as soon as election euphoria fades.

The 30-share Sensex has added 872 points in the last two sessions, while the Nifty has rallied 268 points.

Reflecting overall optimism, sectoral indices capital goods, power, industrials, utilities, metal and realty indices rallied up to 3.06 per cent.

Among the Sensex constituents, Tata Steel emerged as the biggest gainer, rallying 5.78 per cent. Other winners were Yes Bank, NTPC, L&T, Axis Bank, SBI, M&M, HDFC twins, Vedanta, HUL, PowerGrid, ICICI Bank, Kotak Bank, HCL, TCS and ITC, gaining up to 3.79 per cent.

On the other hand, IndusInd Bank, RIL, Asian Paints, Bharti Airtel, ONGC, Maruti, Bajaj Auto, Tata Motors, Bajaj Finance, Coal India, Hero MotoCorp, Sun Pharma and Infosys ended in the red, shedding up to 2.37 per cent.

Continuing with a positive momentum on Monday, the BSE Sensex opened at 39,536.23 and hit an intra-day high of 39,821.94 and a low of 39,353.16. It swung 468.78 points during the day.

Similarly, the Nifty opened at 11,855.50 and traded between a high of 1,957.15 and low of 11,812.40.

The broader BSE midcap and smallcap indices outperformed benchmarks, ending up to 1.77 per cent higher.

"The current government wining the general elections by a two-third majority will clam the political environment in the country. However, post the elections, expect the market to revert back to the fundamental issues such as earnings growth. Slowdown in global growth, US-China trade wars along with rise in oil prices pose an immediate threat to domestic markets," Hemang Jani, Head-Advisory, Sharekhan by BNP Paribas, said.

Foreign institutional investors bought equity worth Rs 2,026.33 crore on Friday, while domestic institutional investors sold shares to the tune of Rs 195.35 crore, provisional data available with stock exchanges showed.

Meanwhile, the Indian rupee Monday rose marginally to 69.51 against the US dollar.

Brent crude, the global benchmark, was trading at 67.50 per barrel, higher by 0.04 per cent.

Globally, bourses in Asia ended on a mixed note, while those in Europe were trading in the green in their respective early deals.

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