Opening on a bullish note, the BSE Sensex marked its life-time high of 39,571.73 in the early trade and the NSE Nifty too hit its record high at 11,883.55 in opening deals.
After the record-breaking 1,422-point rally on Monday, the benchmark Sensex on Tuesday fell by 383 points and the NSE Nifty shed over 119 points as investors rushed to book profits ahead of the poll counting day.
Opening on a bullish note, the BSE Sensex marked its life-time high of 39,571.73 in the early trade and the NSE Nifty too hit its record high at 11,883.55 in opening deals. However, an intense selling emerged across sectors as the session progressed after market participants sensed that exit polls euphoria over Narendra Modi-led NDA’s likely win has already been factored in appropriately. The Sensex ended 382.87 points lower at 38,969.80 and the broader NSE Nifty dropped 119.15 points to settle at 11,709.10.
Vinod Nair, head of research, Geojit Financial Services, said, “The market gave up the gains after testing a new high as the positive sentiment on exit polls is gradually priced-in. Pre-election rally may continue if the election verdict comes in tandem with exit polls where quality mid and small caps will out-perform. Additionally, the downside risk in the market is likely to be protected in the near term supported by extension in economic reforms and pick up in earnings. On the other hand, the global peers are trading in a positive note with signs of ease in trade tensions.”
According to Jayant Manglik, president, Religare Broking, the key focus for market participants throughout this week would be on election outcome (May 23). “The markets are pricing in a clear victory for the NDA government and hence any disappointment on the result day could lead to correction. Going forward in the medium term, notwithstanding the near term rally, we expect the markets to consolidate post the election outcome (even if favourable) as focus would shift back to fundamentals like corporate earnings and global cues which have been volatile due to re-escalation of trade tensions between US and China,” Manglik said.
Auto, telecom, metal, teck and banks were among the top losers. In the Sensex pack, Tata Motors was the biggest loser, dipped 7.05 per cent, a day after the company posted a 49 per cent decline in March quarter profit. Maruti, IndusInd Bank, Bharti Airtel, Mahindra and Mahindra, PowerGrid, State bank of India and Tata Steel lost up to 3.25 per cent. On the other hand, RIL, HUL and Bajaj Finance ended in the green, and rose by up to 1.08 per cent.
Meanwhile, the rupee fell marginally by 2 paise to close at 69.72 against the US dollar. Brent crude, the global benchmark, was trading at 72.01 per barrel, higher by 0.04 per cent.
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