Sensex scales 25,000-mark in volatile trading on big BJP win
The Indian stock markets' benchmark, Sensex soared past 25,000 points mark for the first time Friday on a landslide victory for Modi-led Bharatiya Janata Party in the general elections.
However, there was volatility in the market as it retreated on profit-booking towards the end of the session. The Sensex of the Bombay Stock Exchange (BSE) ended 216 points higher at 24,121.74 points after soaring to a record level of 25,375.63 points in the intra-day.
The BJP-led National Democratic Alliance (NDA) is set for an absolute majority in the Lok Sabha, while the ruling Congress is headed for its worst ever performance with most of the cabinet ministers losing the election.
Terming the election results a "historic verdict", Deutsche Bank said the Indian stocks have entered into a structural bull market and the benchmark Sensex is likely to hit 28,000 points mark by December this year.
The 30-scrip S and P Sensex (sensitive index) of the Bombay Stock Exchange (BSE), which opened in the positive at 24,271.54 points, touched a record high of 25,375.63 points in early trade.
The index briefly fell in the red in the afternoon and ended the day at 24,121.74 points, up 0.90 percent or 216.14 points from its previous day close at 23,905.60 points.
There was extreme volatility, even though the benchmark Sensex was mostly in the positive. The index touched a high of 25,375.63 points and low of 23,873.16 points in the intra-day.
The wider 50-scrip S and P CNX Nifty of the National Stock Exchange (NSE) closed 1.12 percent or 79.85 points higher at 7,203 points after surging to a record high of 7,563.50 points in the intra-day.
The Nifty also witnessed volatility, trading in the range of 7,130.65 points to 7,563.50 points.
"This is an unprecedented election result and something that the markets are rightly rejoicing," said Dinesh Thakkar, chairman and managing director of Angel Broking.
"A strong stable mandate was the need of the hour and it has been delivered even more decisively than the markets had hoped for," Thakkar said.
There was a strong rally in banking, capital goods, realty, power and oil and gas stocks.
Banking index of the BSE soared 4.39 percent. Capital goods index jumped 3.15 percent. Realty index surged almost six percent and power index closed 3.33 percent higher.
However, IT, FMCG, healthcare, and technology indices closed in the red.
Prominent Sensex gainers included: SSLT, up 11.11 percent at Rs.214.95; SBI, up 5.93 percent at Rs.2414.30; Axis Bank, up 5.60 percent at Rs.1,756.85; BHEL, up 5.25 percent at Rs.229.40; and ICICI Bank, up 5.15 percent at Rs.1,464.80.
Out of the 30 Sensex scrips, 12 closed in the red. Tata Steel, down 4.40 percent at Rs.440.45; Dr Reddy's Lab, down 2.95 percent at Rs.2,408.95; Infosys, down 2.83 percent at Rs.3,177.85; and ITC, down 2.81 percent at Rs.357.55 were among the major Sensex losers.
(Posted on 16-05-2014)