Share Market Update: After 1,000-point rally, Sensex sees profitbooking; closes 298 points lower

Share Market Update:  At closing hour, Indian equity market lost all gains with benchmark indices falling around 1 per cent each to bearish territory. While Sensex ended down by 354 points or 0.91 per cent at 38,756.08, Nifty was down by 106 points or 0.91 per cent down at 11,631.

By BusinessToday.In  
Thursday, May 23, 2019

Share Market Update: After hitting record highs on May 23, following the news that the BJP-led NDA was sure to return to power for the second five-year term, Indian equity market lost all gains with benchmark indices falling around 1 per cent each. Sensex traded closed lower by 298.82 points or 0.76 per cent at 38,811, while Nifty was down by 80 points or 0.69 per cent down at 11,657.05, at the closing bell.

Earlier in the day, Sensex gained 1,000 points to breach the historic 40,000 mark for the first time ever. Nifty too crossed the key 12,000 mark and set a new record for the index's new high on the back of early counting in Lok Sabha election indicating PM Narendra Modi was set to storm back to power with a thumping majority.

Here's a look at live updates for the Indian share market today:

Closing Bell

3: 45 pm

Indian equity market lost all gains as both benchmark indices fell around 1 per cent to bearish territory. Sensex ended down by 298.82 points or 0.76 per cent at 38,811, while Nifty was down by 80 points or 0.69 per cent down at 11,657.05. Overall 14 out of 30 stocks on Sensex were advancing, while over 27 components on Nifty ended in red.

Market breadth was in favour of sellers, as 861 stocks declined on NSE against 761 advanced ones, with 110 unchnanged stocks. Similarly, on BSE, 1306 stocks declined against 1163 advancing ones, with 170 unghanged stocks.

Market loses all gains

3: 25 pm

In the last hour of trade, market lost all gains as both benchmark indices fell over 1 per cent to bearish territory. Currently, at 3: 20 pm, Sensex is trading down by 354 points or 0.91 per cent at 38,756.08, while Nifty is down by 106 points or 0.91 per cent down at 11,631.

Sensex to reach 45,000, Nifty to 13,500 by June 2020: Morgan Stanley new target

3: 10 pm

As per the report by Ridham Desai, head of India research and India equity strategist at Morgan Stanley, co-authored with Sheela Rathi, Upasana Chachra and Avni Jain, the financial major expects the Modi 2.0 administration to continue with its inflation framework, fiscal consolidation, infrastructure spending, FDI focus and strong external affairs policies.

"The ongoing trends suggest that there will be continuity in administration. This means the equity markets can predict policy. India's policy certainty index relative to the world which was threatening to roll over could now make fresh peaks," the report added.

Eicher Motors Limited on ' Flash Electronics sues Enfield in US'

3: 00 pm

The company has informed teh exchanges on clarification notice, that the company has been working with various suppliers for over 60 years, in a manner that meets all legal and regulatory requirements.

The filing added, "We have learnt of a lawsuit filed in The United States of America by Flash Electronics Pvt Ltd. that alleges that one of the components used in some of Company's motorcycle models infringes on the plaintiff's registered patent. The supplier of said component denies plaintiff's claims vehemently."

Global Update

2: 45 pm

U.S. equity futures and European stocks tracked a slide in Asian shares on Thursday as trade tensions between the world's two largest economies showed little sign of easing. S&P 500 futures pointed to a big drop at the New York open after China's flagship People's Daily published two commentaries assailing American moves to curb Chinese companies. FTSE, CAC and DAX (down 2%)  Index declined 1-2%.

The yen advanced broadly on Thursday as persistent U.S.-China trade fears and Brexit concerns fanned risk aversion, lifting the safe-haven Japanese currency. The yen was 0.1% firmer at 110.200 to the dollar, having pulled back from a two-week low of 110.675 plumbed on Tuesday. The Japanese currency also rose 0.15% against the euro, added 0.2% versus pound and advanced 0.3% on the Australian dollar.

The pound dipped 0.07% to $1.2652 after slipping to $1.2625 overnight, its lowest since January 4.

Dollar hits one month high

2: 20 pm

The dollar hit its highest level in a month as economic and political uncertainties swept through Europe and Asia, pinning down most major currencies such as the euro and the yuan. The dollar hit a high of 98.189 against a basket of six major currencies, its highest level since April 26, when it hit a two-year high of 98.33.

"Certainly the dollar has been acting like something of a safe haven even though the Fed has been more dovish than has been expected," said Neil Mellor, FX strategist at BNY Mellon.

Sectors

2: 00 pm

Major broad indices continue to trade in the green territory. Except FMCG and IT indices, all the remaining sectors are advancing in the afternoon trade. Nifty Infra is up 2 per cent, followed by gains in Energy sector at 0.75 per cent gain and Nifty Bank at 0.60 per cent hike. Where FMCG is down by 1.17 per cent, IT sector is at 0.47 per cent decline.

Market Experts' Opinion

1: 50 pm

Mr. Romesh Tiwari, Head of Research, CapitalAim quoted, "As expected and predicted by exit polls the BJP is going to form the government again. Markets already had rallied on Monday and today after the trends started confirming BJP's win Sensex and Nifty hit their new highs. But now the market will have to catch up with ground realities of the economy and global factors. Global markets are showing weakness due to US-China trade worries and so our market may settle down or even turn negative in the short term. Traders must stay cautious now.  Looking at technicals, Nifty has support around 11,730 levels, breaching it on downside might result in more downside towards 11,600, On the upside, any close above 11,800 may take the Nifty above 12,000. Infra and Banking sector may give good returns on the upside. We are positive on DLF, Yes Bank, IndusInd Bank."

Market Experts' Opinion

1: 30 pm

Commenting on the aftermath of the early election results trends and market impact, Mr. Nilkhil Kamath, Co-Founder & Chief Investment Officer Zerodha said, "The elections have played out in line with consensus opinion, BJP looks like they will have a majority even outside the alliances that form the NDA. Consistency in leadership is a positive for the economy overall and should shore up sentiment amongst foreign investors. This could lead to Rupee strengthening and benchmark yields coming down over the short term.

Specific to the Indian stock market; we believe they might have run up ahead of fundamentals buoyed by sentiment over the short term. It might be prudent to wait for the inherent fundamentals to catch up before waging big directional bets on the market right now."

Adani Ports & SEZ

1: 20 pm

Adani Ports & SEZ board has considered raising funds by way of issuance of Non-Convertible Debentures for refinancing of existing borrowing and general corporate purpose for an amount upto Rs. 1.500 crores on private placement basis in one or more tranches.

In another announcement, the compnay informed about signing an agreement with APSEZ to develop and operate a Container Terminal at Yangon Port, Myanmar.

Asian Shares slump to four-month low

1: 10 pm

Asian shares broke support and caved to a four-month low on Thursday, as concerns grew that the Sino-U.S. trade conflict was fast morphing into a prolonged technology cold war between the world's two largest economies.

"Both the U.S. and China appear to be preparing for a prolonged period of trade conflict," wrote analysts at Nomura in a note on the standoff.

Meanwhile, in early European trading, futures for the pan-region Euro Stoxx 50 and German DAX were each down 0.8% while FTSE futures stumbled 0.6% and France's CAC 40 futures slipped 0.7%.

U.S. stock futures also pointed to a weak start with the S&P 500 e-minis faltering 0.5%.

Oil prices drop further

1: 05 pm

Oil prices dropped by around 1% on Thursday, extending falls from the previous session amid surging U.S. crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.36 per barrel, down 63 cents, or 0.9%, from their last close. Crude futures already fell by around 2% the previous day.

Market Outlook for Today by Rusmik Oza, Head of Fundamental Research, Kotak Securities Ltd.

1: 00pm

'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.'

Quotes from Market Experts

12: 45 pm

"This is a new beginning not only for the markets but for the whole country. India is on the way to be a super power leading the world," quoted Mr. Motilal Oswal, CMD, MOFSL.

On Sensex hitting 40k nifty crossing 12k, Mr. Amnish Aggarwal, Head Research Prabhudas Lilladher coomented,"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."  on Sensex hit 40k nifty crosses 12k.

HDFC reduces Face Value

12: 30 pm

The bank has announed Wednesday about sub-division of equity shares of the bank from 1 equity share of face value of Rs 2 each to 2 equity shares of face value of Rs 1 each. Bank's Board has also recommended dividend fro Rs 15 per equity share.

OBC Bank to raise capital through QIP

12: 05 pm

OBC's Board has approve the raising of capital from the market through QIP or such other mode as decided by the Board. The timing and exact quantum of the issue would be decided by the Board/ Committee of Board in due course depending upon market conditions.

Nippon Life Insurance increases stake on RNAM to 75%

11: 55 am

Nippon Life Insurance of Japan today announced it has signed binding definitive agreements with Reliance Capital Ltd to increase its stake in Reliance Nippon Life Asset Management Ltd (RNAM) to 75 per cent. Both partners currently hold 42.88 per cent each in the company, while the rest is with public shareholders.

Reliance Capital will exit its entire RNAM shareholding to Nippon Life Insurance, and Offer For Sale to other financial investors to ensure the minimum free float requirement of 25 per cent is also met. NLI will make the mandatory open offer at Rs. 230 per share. The open offer price represents a premium of 15.5% to the minimum 60-day price as determined under the SEBI Takeover Regulations.

Modi favouring markets, currency and bonds

11: 45 am

The partially convertible rupee was trading at 69.51/52 per dollar versus previous close of 69.6750.

"As expected markets have rallied but for this rally to sustain concrete steps are needed to address liquidity and credit stress. Revival, reflation and reform should be the mantra going ahead," said Rajeev Pawar, a group head at Edelweiss Financial Services.

Low inflation, ample liquidity support from the central bank and expectations of easier monetary policy was helping sentiment for the bond market. The benchmark 10-year bond yield was down 5 basis points at 7.21% after touching 7.19% earlier, its lowest level since April 9, 2018.

52-week high

11: 20 am

After opening with a gap up of 1.39 per cent, Nifty has touched a new record high at 12041.15 today, whereas Sensex is has reached 40,124.96 as its new 52-week high. Although after reaching the highest ever levels, the indices have pared gains and reached back to 1 per cent gains.

Volatility Index

11: 10 am

Todays volatility currently stands at 20, down by 7.61 points or 27.54%. Indian Vix is usually seen high over the years on election months. Volatility index made a new high at 30.1825 on May 22, from the eralier 52-week high recordedon May 16, at 28.

Sectors

10: 55 am

On the counting day, the biggest moves in the sectoral space is seen in Nifty PSU Bank, gaining at 7.25%, followed by Nifty PVT Bank, Bank and Realty, each gaining over 3%. While Media and Fin Service gained over 2% each, Auto and Metal stocks are gaining buyers interest as well between 0.50 to 1%. Only IT sector stands unchanged in the trade today.

Market Breadth

10: 45 am

Overall 26 stocks are advancing out of 30 stocks on Sensex and Nifty has 44 components trading in the green. NSE's advance decline ratio stands at 4.31, with 1181 advancing stocks against 274 declining ones, with 73 unchnaged. Similarly, on BSE, the ad ratio is at 3.04, with 1404 stocks are trading in the green against 462 decling and 80 unchanged ones. More stocks have advanced and the overall Mcap of the market has increased.

Market Update

10 : 35 am

Indian Benchmark indices Sensex hits 40,000, Nifty crosses 12,000 level with on May 23, the counting day for Lok Sabha Election 2019, with strong possibility of Modi coming back to power.

FII and DII

10: 10 am

Foreign institutional investors sold equity worth Rs 965.02 crore on Wednesday, while domestic institutional investors sold shares to the tune of Rs 157.75 crore, provisional data available with stock exchanges showed.

Market Update

9: 55 am

Investor sentiment has been buoyant since exit polls were announced on Sunday, with both the Nifty and the Sensex gaining 3.7% each the next session, a level last seen in 2014. The Nifty rose 64.8% during Modi's first term till Wednesday's close while the Sensex gained 63.6% during the same period.

Indian Rupee

9: 45 am

Indian Rupee consolidated in a range ahead of general election results that will be declared today, opened higher by 21 paise at 69.45 against the dollar versus previous close 69.66.

Gainers and Losers

9: 30 am

Top gainers on BSE today are Adani Enterprises, Bank Of Baroda, IndusInd Bank, Bharat Finance, SunTV and top gainers on NSE are Yes Bank, IndusInd Bank, Dr. Reddy Labs, Sun Pharmaceuticals and Grasim Industries.

Top losers on BSE are Heritage Foods, GE T&D India, Vedanta Ltd, Page Industries and Eris Lifesciences, whereas top losers in NSE are Asian Paints, BPCL, UPL, Axis Bank and Coal India.

Thursday Opening Bell

9: 20 am

Market opens at record high as early trend show BJP led NDA ahead on the counting day for Lok Sabha Election 2019.The Benchmark index S&P Sensex is up 551 points at 39,661 and Nifty is trading at 11,882, up by 144 points, as NDA is near half-way mark of 272 in early trends

Pre-opening Bell

9: 15 am

 The Benchmark index S&P Sensex is up by 481 points or 1.23 per cent up, at 39,591.77 and Nifty 11,901, up by 163.40 or 1.39 per cent, in the pre-opening session.

India Vix on Wednesday

9: 05 am

India Vix index, that subjects volatility in the market, was up at 27, ahead of counting of Lok Sabha Election 2019 to be done tomorrow.

Wednesday's Close

9: 00 am

Sensex and Nifty extended gains in the afternoon session to close on the positive side, backed up by gains in Bank, Realty, Auto and Financial Services.  BSE Sensex ended up 140 points or 0.36% at 39,110.21, while NSE Nifty closed at 11,737, up 28 points or 0.25%. Overall, 33 out of 50 on Nifty and 26 out of 30 stocks on Sensex closed in the green.

In the meanwhile, India Vix index, that subjects volatility in the market, was up at 27, ahead of counting of Lok Sabha Election 2019 to be done on May 23.

Global Update

8: 50 am

Asian shares broke support and caved to a four-month low on Thursday, as concerns grew that the Sino-U.S. trade conflict was fast morphing into a prolonged technology cold war between the world's two largest economies. In Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.

Asian markets like Nikkei, Hong Kong, Taiwan declined 1% each on account of trade war. SGX Nifty declined 30 points or 0.3% on the Singapore exchange, contrary to the bullish expectations on Nifty and Sensex. Wall Street, as well closed lower Wednesday. US Dow Futures slipped 112 pts or 0.5%.Dow Jones declined half a percent on account of trade war between US-China. White House said to be preparing to blacklist more Chinese technology companies.

Brent Crude

8: 40 am

Brent Crude slipped 3% below $70/bbl. Fall is expected to be positive for stocks like HPCL, BPC and IOC.

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