Sensex plunges 1313 points from record high on profit booking as NDA leads

Sensex plunges 1313 points from record high on profit booking as NDA leads

Mumbai, May 23: Benchmark indices tumbled over 1,000 points from its intraday high as investors booked profits at higher levels that saw Sensex and Nifty hitting 40,000 and 12,000 levels, respectively, over optimism surrounding the National Democratic Alliance (NDA’s) likely return to power after the 2019 Lok Sabha election.
The S&P BSE Sensex hit the 40,000 mark on Thursday, after trends showed Narendra Modi – led National Democratic Alliance (NDA) sweeping to power in the Lok Sabha elections 2019.
Sensex recorded its sharpest intra-day fall in the past 11 years in absolute terms. The index closed at 38,811 points, a fall of 1,314 points from intra-day high level of 40,125, thus posting its sharpest intra-day decline since January 21, 2008. The Sensex slipped almost 299 points, or 0.7 per cent, at 38,811 levels, with Vedanta Limited, ITC, Tata Motors, HDFC Bank, Bajaj Finance, leading the list of losers. Out of the 30 BSE constituents, 16 ended in the red.
The broader Nifty50 index dipped 0.7 per cent to end the day at 11,657 levels. The market breadth was tilted in favour of sellers. About 920 stocks declined and 810 shares advanced on the NSE.
Sectorally, all the indices on NSE, except Nifty Media and Realty, settled lower at the day’s end, with Nifty FMCG bleeding the most 1.7 per cent, followed by Nifty Metal 1.48 per cent. The Nifty Bank index, which hit 31,000-level earlier in the day, dipped 118 points to 30,409 levels.
In the broader market, the S&P BSE MidCap index dropped 21 points, or 0.15 per cent, at 14,650 levels, while the S&P BSE SmallCap index concluded the day 16 points, or 0.11 per cent, lower at 14,353 levels.
IndusInd Bank was the biggest gainer in the sensex pack, rallying 5.23 per cent, followed by Hero MotoCorp, Coal India, Yes Bank, PowerGrid, ICICI Bank, HCL Tech, L&T, Kotak Bank and Bharti Airtel, rising up to 1.56 per cent.
On the other hand, Vedanta, ITC, Tata Motors, HDFC twins, Bajaj Finance, Sun Pharma, Tata Steel, TCS, ONGC and Infosys fell up to 5.53 per cent.
“Markets were initially enthused to see the election results falling in line with the exit polls. However, the run up to the D-day was so sharp that it turned out to be a sell on news phenomenon,” said Devang Mehta, head – equity advisory, Centrum Wealth Management. Participants would now be keen to know the future course of action for bringing the economy back on track, solution to the liquidity situation, the union budget, onset and progress of monsoon in June and most importantly the earnings trajectory, he added.
According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment.
BUZZING STOCKS
IndusInd Bank shares surged 8 per cent to Rs 1,640 in early trade on Thursday on the BSE before ending the day 5 per cent higher on expectation that the bank would return to normalcy in terms of earnings momentum after the entire exposure to IL&FS was classified as non-performing asset (NPA) in the fourth quarter of fiscal 2018-19 (Q4FY19).
Shares of Adani Group companies surged up to 14 per cent intra-day on the BSE on Thursday as trends showed the Narendra Modi-led National Democratic Alliance (NDA) leading the vote counts for the 2019 Lok Sabha election.