Modi’s 340 powers Sensex to 25,376
18 May 2014 4:41 AM IST
After vaulting past the 25,000-mark on the victory of the Narendra Modi-led BJP in Lok Sabha polls, the BSE benchmark Sensex on Friday retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.
The 30-share bluechip index, which had gained over 1,560 points in five sessions previously, surged 1,470 points to hit a new life-time high of 25,375.63 in early trade fuelled by hopes that BJP government would fast-track reforms and accelerate economic activity.
However, massive profit-taking pulled the Sensex down and it briefly slipped into negative territory to touch low of 23,873.16. At the close, the Sensex ended at a new closing peak of 24,121.74, a rise of 216.14 points or 0.90 per cent — extending gains for the second straight session.
In terms of market capitalisation, investor wealth rose by Rs 1 lakh crore to end at Rs 80.64 lakh crore.
The 50-scrip Nifty of NSE also crossed 7,500-mark for the first time in history to a high of 7,563.50, up 440.35 points or 6.18 per cent. However, like Sensex, it came down at the fag end to settle at 7,203.00, showing a rise of 79.85 points or 1.12 per cent.
‘Markets have surely cheered the Modi-led BJP's win, however major concerns in coming future is the economic recovery of the country, necessary actions to be taken related to reform measures and highlights in the coming Union Budget,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
‘We remain bullish on Indian equities. It may be early to book profits,’ foreign bank UBS said in a report adding that its Nifty target for end-2014 is 8,000.
Among the 30-Sensex components, SBI (5.93 per cent), HDFC Bank (2.11 per cent, ICICI Bank (5.15 per cent) Axis Bank (5.60 per cent), Larsen and Toubro (3.52 per cent), Reliance Industries (2.59 per cent), ONGC (1.83 per cent) and NTPC (2.01 per cent) clocked smart gains. Sesa Sterlite was the best performer with 11 per cent gain.Realty, banking, power, capital goods, refinery and metal counters attracted heavy buying interest while shares from IT, FMCG, pharma, tech and consumer durable fell on selling.
IT shares were at the receiving end following rise in the rupee value. In the forex market, the rupee climbed to about 11-month high of 58.62 against the US dollar and was last trading at 58.98.
Dipen Shah, Head- Private Client Group Research, Kotak Securities, said: ‘We expect new government to take steps to increase public investments and encourage private investments in infrastructure, ensure better governance, reduce fiscal deficit (including control of wasteful subsidies), implement structural reforms like GST, DTC etc.’Experts also appear confident of markets in the short-term.
‘On Monday, we may see volatility to continue on street as participants would be re-evaluating existing bets and balancing positions accordingly. It’s evident that positive bias is here to stay...,’ said Jayant Manglik, President - Retail Distribution, Religare Securities.
Eighteen scrips out the 30-share Sensex firmed up while others declined.
Major gainers from the sensex pack were Sesa Sterlite (11.11 per cent), SBI (5.93 per cent), Axis Bank (5.6 per cent), Bhel (5.25 per cent), ICICI Bank (5.15 per cent), Tata Power (3.72 per cent), L&T (3.52 per cent), Bharti Airtel (3.33 per cent), Reliance Industries (2.59 per cent), Tata Motors (2.59 per cent), HDFC Bank (2.11 per cent) and NTPC (2.01 per cent). However, Tata Steel dropped by 4.40 per cent, followed Dr Reddy Lab (2.95 per cent), Infosys (2.83 per cent), ITC (2.81 per cent), Wipro (2.61 per cent), Cipla (2.47 per cent), HDFC (1.88 per cent), Hero Motocorp (1.78 per cent), TCS (1.64 per cent), Sunpharma (1.38 per cent) and HUL (1.30 per cent).
Among the S&P BSE sectoral indices, Realty rose by 5.97 per cent followed by Bankex (4.39 per cent) Power (3.33 per cent), Refinery (2.65 per cent) and Metal (2.61 per cent).
The 30-share bluechip index, which had gained over 1,560 points in five sessions previously, surged 1,470 points to hit a new life-time high of 25,375.63 in early trade fuelled by hopes that BJP government would fast-track reforms and accelerate economic activity.
However, massive profit-taking pulled the Sensex down and it briefly slipped into negative territory to touch low of 23,873.16. At the close, the Sensex ended at a new closing peak of 24,121.74, a rise of 216.14 points or 0.90 per cent — extending gains for the second straight session.
In terms of market capitalisation, investor wealth rose by Rs 1 lakh crore to end at Rs 80.64 lakh crore.
The 50-scrip Nifty of NSE also crossed 7,500-mark for the first time in history to a high of 7,563.50, up 440.35 points or 6.18 per cent. However, like Sensex, it came down at the fag end to settle at 7,203.00, showing a rise of 79.85 points or 1.12 per cent.
‘Markets have surely cheered the Modi-led BJP's win, however major concerns in coming future is the economic recovery of the country, necessary actions to be taken related to reform measures and highlights in the coming Union Budget,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
‘We remain bullish on Indian equities. It may be early to book profits,’ foreign bank UBS said in a report adding that its Nifty target for end-2014 is 8,000.
Among the 30-Sensex components, SBI (5.93 per cent), HDFC Bank (2.11 per cent, ICICI Bank (5.15 per cent) Axis Bank (5.60 per cent), Larsen and Toubro (3.52 per cent), Reliance Industries (2.59 per cent), ONGC (1.83 per cent) and NTPC (2.01 per cent) clocked smart gains. Sesa Sterlite was the best performer with 11 per cent gain.Realty, banking, power, capital goods, refinery and metal counters attracted heavy buying interest while shares from IT, FMCG, pharma, tech and consumer durable fell on selling.
IT shares were at the receiving end following rise in the rupee value. In the forex market, the rupee climbed to about 11-month high of 58.62 against the US dollar and was last trading at 58.98.
Dipen Shah, Head- Private Client Group Research, Kotak Securities, said: ‘We expect new government to take steps to increase public investments and encourage private investments in infrastructure, ensure better governance, reduce fiscal deficit (including control of wasteful subsidies), implement structural reforms like GST, DTC etc.’Experts also appear confident of markets in the short-term.
‘On Monday, we may see volatility to continue on street as participants would be re-evaluating existing bets and balancing positions accordingly. It’s evident that positive bias is here to stay...,’ said Jayant Manglik, President - Retail Distribution, Religare Securities.
Eighteen scrips out the 30-share Sensex firmed up while others declined.
Major gainers from the sensex pack were Sesa Sterlite (11.11 per cent), SBI (5.93 per cent), Axis Bank (5.6 per cent), Bhel (5.25 per cent), ICICI Bank (5.15 per cent), Tata Power (3.72 per cent), L&T (3.52 per cent), Bharti Airtel (3.33 per cent), Reliance Industries (2.59 per cent), Tata Motors (2.59 per cent), HDFC Bank (2.11 per cent) and NTPC (2.01 per cent). However, Tata Steel dropped by 4.40 per cent, followed Dr Reddy Lab (2.95 per cent), Infosys (2.83 per cent), ITC (2.81 per cent), Wipro (2.61 per cent), Cipla (2.47 per cent), HDFC (1.88 per cent), Hero Motocorp (1.78 per cent), TCS (1.64 per cent), Sunpharma (1.38 per cent) and HUL (1.30 per cent).
Among the S&P BSE sectoral indices, Realty rose by 5.97 per cent followed by Bankex (4.39 per cent) Power (3.33 per cent), Refinery (2.65 per cent) and Metal (2.61 per cent).
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