Sensex hits 40k; dips 1,314 pts from high by close; Nifty holds 11,650

During the day, Sensex and Nifty hit the levels of 40,000 and 12,000, respectively, for the first-ever time

5:03 PM

Arun Jaitley tweets

5:02 PM

5:02 PM

5:01 PM

4:59 PM

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4:58 PM

Congratulations @narendramodi for your election as @PMOIndia. My best wishes for every success in your second term in office. I express my strong commitment to continue working with you in order to enhance the already solid and amicable relations between our two countries.

4:44 PM

EXPERT COMMENT | Anand Rathi, Chairman, Anand Rathi Group

Any strong and stable government is in a better position to push the robust economic reforms.  The country needs far reaching major reforms in the area of land, agriculture and labour.  New government is therefore expected to address these issues on priority.

 

The Reserve Bank of India should also look at the possibility of increasing liquidity and reducing the interest rate, in view of the low inflation in last few years.  The government also need to offer fiscal incentives in GST and income tax  to increase economic growth and employment.  There is imperative need to improve the ease of doing business particularly for the small and mid-size businesses and also reducing the corruption affecting the common people in the country.

 

It is hoped that the new government with its strong support both in Lok Sabha and Rajya Sabha would be able to address all such issues on top priority and help increase the economic growth of the country.

4:42 PM

Post Market analysis by Kotak Securities

The classic ‘BUY on expectation and SELL on news seems to have played out in today’s session. Some of the passive money that had come in the last three months at lower levels could be going out due to global worries. The strong election verdict is beyond expectation and long only money, both from FIIs and local investors will surely resume in the next few trading sessions. Rich valuations of Nifty closer to 12,000 levels (i.e. 19x Fw PE ) provides limited upside in large caps. There could be some near term concerns emanating from earnings downgrades that is taking place in the ongoing results season. With stability and visibility back in place we feel investors should focus more on Mid & Small caps rather than large caps.

4:24 PM

Vinod Nair, Head of Research, Geojit Financial Services Ltd on Lok Sabha results 2019

"The larger than mandate stimulated the market to a new high providing a solid pre-election rally of 11 per cent YTD. Since the final outcome is in-line with expectation, we can have a mild consolidation in the short-term. This is because neither the earnings nor the economy has started to pick up and unlikely to revamp immediately as it takes 1 to 2 quarters before stabilizing. These factors along with premium valuation and muted global trend will start to control the momentum of the market as optimism gets digested. Whereas, in the medium-term we expect a healthy momentum in H2FY20 led by Mid & Small caps as earnings growth returns with continuity in reforms & stability in global market."

4:22 PM

Ankur Maheshwari, CEO Equirus Wealth Management on Lok Sabha results 2019

“This is a very clear result. There will be stability from an economic point of view and this is highly positive for the markets. On the other hand, the Nifty trailing PE is close to 29 and this is not a cheap market. There is a trade war between the US and China. Systematic Transfer Plans are a good way of reducing risk in such circumstances. In terms of segments , mid and small caps have corrected strongly over the past 12-18 months. Such companies tend to rally in a bullish phase and hence investors should have some exposure to them.”

4:22 PM

Sanjay Chamria, VC & MD, Magma Fincorp on Lok Sabha election results

"The second term is a reflection of India voting for stability. The government needs to target bringing growth back to the economy as its one point plan. The government’s chief move in the financial sector should be to address the lack of money movement at banks and accelerate the flow of money in the system at large. Investors need to be incentivized to invest in the NBFC sector both on the equity and debt side, to enable short-term and long-term funding. MFs have around Rs 1.3 trillion exposure to NBFCs (including HFCs) about to mature over the next 3 months. NBFCs play a critical role in providing credit of around Rs 8.5 trillion to the marginalised and economically backward which is the backbone of the Indian economy. Truckers, drivers, small business owners, affordable home owners all rely on NBFCs for credit, thus making them a critical ingredient in the financial sector."

4:21 PM

NEWS ALERT | Outgoing cabinet & council of ministers' meeting tomorrow at 5:30 pm: CNBC TV18

Cabinet will pass resolution to dissolve 16th Lok Sabha

4:07 PM

L.K Advani praises Modi-Shah duo

4:03 PM

Nitin Gadkari address media after BJP registers thumping victory at Lok Sabha 2019 elections

- Opposition has a crucial role to play in a democracy, we should all work together now for the country's development.

- Prime Minister is not of any party, he is of the country; it was wrong to call him "thief".

4:01 PM

CAPA on Modi victory

3:45 PM

EXPERT COMMENT | Garima Kapoor, Economist, Elara Capital

Reeling under consumption slowdown amid liquidity crisis in NBFC sector and lower terms of trade in the agriculture sector, optimism around India’s economic growth has come to a grinding halt. With limited fiscal space amid compelling priorities and electoral promises, the Modi government’s second term in office is likely to be more challenging than the first.

 

Unlike the first five years, the solution to the problems is complex and requires a radical shift in the economic policy. If the first five years of the government were dominated by housing, roads and toilets, the next five would have to be dominated by investment, jobs and nursing of the dislocated financial sector. Among immediate priorities we expect the Modi led government to take measures to revive consumption, address financial sector dislocation by recapitalizing PSU banks, boost manufacturing sector to ensure job creation and solve the conundrum of skill shortage in the country to ensure employability.

With the ruling NDA dispensation set for another five year term, the political risk has reduced and the market expectation for policy continuity has been addressed. We believe, the election related exuberance could propel the markets in the near term and pose an upside risk to our CY’19 Nifty target of 12,000. However, the current level of corporate fundamentals, trade wars and the progress of monsoon will weigh on the markets.  

 

3:41 PM

Sectoral trends on NSE at close

3:40 PM

Top gainers and losers on S&P BSE Sensex at close

3:39 PM

Market at close

3:38 PM

Market at close

3:37 PM

Rupee Alert | Re breaches 70/$ mark,

Source: Bloomberg

3:34 PM

Markets will go up if the govt can kick-start the economy: Andrew Holland

A tally above 300 for the National Democratic Alliance (NDA) is good news. This is what the market was hoping for. The budget NDA government put out last time will help consumption, but I think the new government needs to now come back with extra measures, which will help kick-start the economy without going overboard on the fiscal deficit. If the new government can do that, that is kick-start the economy again, then I think the markets will go higher. In doing so, I don’t think the markets will mind if there are minor slippages. READ MORE

3:33 PM

Celebration time | BSE cuts 40kg cake to celebrate mount 40k

3:32 PM

Market at close | Nifty50 sheds 58 points to end at 11,679 mark

3:31 PM

Market at close | BSE Sensex closes 200 points lower at 38,898 levels

3:29 PM

Chinese govt congratulates PM Narendra Modi on Lok Sabha 2019 election results

3:27 PM

NEWS ALERT | Fourth worst fall ever from high to low for markets

3:25 PM

Market direction to depend on steps taken to accelerate growth: Nilesh Shah

Removal of political uncertainty is always a welcome situation from a markets point of view. Current mandate shows the maturity of voters in choosing a stable government. Now, with that uncertainty behind, the market will focus on steps taken by the government to encourage investment and give push to consumption, which is hitting a soft patch. READ MORE

3:22 PM

Sectoral trends on NSE