ZCZC
BCN-19
INDIA-MARKETS-SENSEX
Markets soar in early trade; Sensex zooms 942 points, rupee gains 79 paise
Mumbai, May 20, 2019 (BSS/PTI) – Domestic financial markets Monday cheered
exit poll results that showed the ruling NDA is likely to win the general
elections, with the benchmark BSE Sensex skyrocketing over 900 points, and
the rupee appreciating 79 paise against the US dollar.
After soaring over 962 points in early session, the 30-share index pared some
gains and was trading 687.63 points, or 1.81 per cent, higher at 38,618.40.
In similar movement, the broader NSE Nifty was trading 203.05 points, or 1.78
per cent, up at 11,610.20.
Top gainers in the Sensex pack include Maruti, L&T, SBI, ICICI Bank, RIL,
M&M, IndusInd Bank, Axis Bank, Yes Bank and Vedanta, rising up to 4 per cent.
On the other hand, Bajaj Auto, Infosys and HCL Tech slipped up to 2 per cent.
Most exit polls Sunday forecast another term for Prime Minister Narendra
Modi, with some of them projecting that BJP-led NDA will get more than 300
seats to comfortably cross the majority mark of 272 in the Lok Sabha.
The results of the seven-phase polls will come out Thursday.
“The exit polls have been better than market expectations, with the ruling
party getting a comfortable majority. The market is likely to rally further,
but the rally may not be significant as there are challenges of not so
encouraging earnings growth, lower liquidity, slowing economy and global
challenges,” said Naveen Kulkarni, Head of Research, Reliance Securities.
There could be sector-specific rally. Infrastructure and banking stocks could
do well, he added.
Meanwhile, market regulator Sebi and stock exchanges have beefed up their
surveillance mechanism to check any manipulative activities in the market
this week in view of the high-octane election related events lined up.
Foreign institutional investors sold equity worth Rs 1,057.82 crore on
Friday, while domestic institutional investors purchased shares to the tune
of Rs 1,809.76 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan and Korea were trading on a mixed
note in their respective early sessions.
On the currency front, the rupee appreciated by 79 paise to 69.44 against the
US dollar in opening trade Monday.
Brent crude, the global benchmark, was trading at 73.28 per barrel, higher by
1.48 per cent.
BSS/PTI/HR/1155