Indices end at record closing highs on Modi win hangover

Indices end at record closing highs on Modi win hangover

Mumbai, May 24: The benchmark indices ending Friday’s session at record closing highs, after investors’ optimism was boosted by Narendra Modi-led National Democratic Alliance (NDA’s) return to power the previous day. While the gains were across the board, bank stocks and financials made the highest contribution to the indices’ rise.
The S&P BSE Sensex ended the day 623 points, or 1.6 per cent, higher at 39,435, with ICICI Bank, Larsen & Toubro, Bharti Airtel, Vedanta, and Tata Motors leading the list of gainers. Oout of the 30 BSE constituents, only Hindustan Unilever and NTPC ended the day in the red.
The broader Nifty50 index rose 187 points to settle at 11,844. About 1823 shares advanced, while 676 declined, and 150 shares remained unchanged on the NSE.
In the broader market, the S&P BSE MidCap index jumped 295 points, or 2 per cent, to hover at 14,945 levels, while the S&P BSE SmallCap closed at 14,670 levels, up 347 points, or 2.4 per cent.
All the Nifty sectoral indices ended the day with gains, with Nifty PSU Bank gaining the maximum 5.6 per cent, while Nifty Realty also rose 4.4 per cent.
BUZZING STOCKS
Shares of JMC Projects (India) surged 15 per cent to Rs 136 apiece in the opening trade on the BSE on Friday after the company secured new orders worth of Rs 616 crore for residential and commercial projects in South India.
KEI Industries traded higher for the fifth straight day, up 5.6 per cent at Rs 491.95 on the BSE on Friday, after the company reported a strong operational performance in the March quarter (Q4FY19).
The cable manufacturing company’s operating profit in Q4FY19 rose 36 per cent at Rs 138 crore against Rs 101 crore in the year-ago quarter. The operating margin improved 113 basis points (bps) at 10.93 per cent due to increase in sales and better product mix.
Net sales grew 22 per cent at Rs 1,259 crore, while net profit jumped 21 per cent at Rs 60 crore over the previous year quarter.
Currently, KEI Industries have strong pending orders worth Rs 4,707 crore plus L1 Rs 113 crore for extra high voltage (EHV).
The management has guided 18-20 per cent growth in revenues in FY20 on the back of demand from conversion of refineries to meet BS VI norms, metro projects, distribution strengthening in power sector and state orders for underground cabling to improve overall efficiency and reduce AT&C losses. EBITDAM (earnings before interest, income taxes, depreciation, amortization, and management fees) could also improve to 11 per cent going ahead as retail sales and revenues from EHV segment increase.