Stocks settle with modest gains ahead of election results

Key indices settled with modest gains after a volatile session of trade. The Sensex settled above the psychological 39,000 mark after falling below that level in intraday trade. Investors are awaiting results of Lok Sabha polls scheduled to be announced tomorrow, 23 May 2019.

Most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls. The 2019 polls, held from April 11 to May 19, will decide which party presides over the 17th Lok Sabha. Elections were held for 542 seats. A party or coalition needs 272 seats in parliament to form a government.

Local stocks drifted higher in early trade on buying demand in index pivotals. Stocks hovered in positive zone in morning trade. A bout of volatility was seen in mid-morning trade after the key indices trimmed gains soon after hitting intraday high.

Key indices hovered in a small range in early afternoon trade. Volatility continued in afternoon trade as the key indices regained positive zone soon after sinking in negative zone. Key indices extended gains in mid-afternoon trade. Stocks pared gains in late trade.

The barometer index, the S&P BSE Sensex, rose 140.41 points or 0.36% at 39,110.21. The index hit high of 39,249.08 and low of 38,903.87 in intraday trade.

The Nifty 50 index rose 28.80 points or 0.25% at 11,737.90. The index hit high of 11,784.80 and low of 11,682.40 in intraday trade.

The S&P BSE Mid-Cap index shed 0.16%. The S&P BSE Small-Cap index rose 0.54%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1359 shares rose and 1162 shares fell. A total of 186 shares were unchanged.

The S&P BSE Mid-Cap index shed 0.16%. The S&P BSE Small-Cap index rose 0.54%. Among the sectoral indices on BSE, the S&P BSE Bankex (up 0.89%), the S&P BSE Capital Goods index (up 0.87%), the S&P BSE Industrials index (up 0.82%) outperformed the Sensex. The S&P BSE FMCG index (down 0.84%), the S&P BSE Consumer Durables index (down 0.64%), the S&P BSE IT index (down 0.61%) underperformed the Sensex.

Sun Pharmaceutical Industries (up 2.92%), Bajaj Auto (up 2.29%), Bharti Airtel (up 1.83%), Tata Motors (up 1.61%) and ICICI Bank (up 1.44%) edged higher from the Sensex pack.

Yes Bank (down 2.34%), TCS (down 1.25%), Power Grid Corporation of India (down 1.03%) and Hindustan Unilever (down 0.97%) edged lower from the Sensex pack.

Index heavyweight and cigarette major ITC dropped 1.88% to Rs 299.55.

Index heavyweight and housing finance major HDFC advanced 1.25% to Rs 2,140.60.

IndusInd Bank rose 4.84% after the bank announced its Q4 result during trading hours today, 22 May 2019. IndusInd Bank's net profit dropped 62.21% to Rs 360.10 crore on 28.87% rise in total income to Rs 7550.43 crore in Q4 March 2019 over Q4 March 2018. Adjusted for one-off provisions, net profit works out to Rs 1189 crore showing growth of 25% Y-o-Y.

Commenting on the performance, Romesh Sobti, MD & CEO, IndusInd Bank said in FY 19, as well as Q4 March 2019, while the bank has witnessed robust growth in its topline as well as in operating profits, aggressive one time provisioning for a group exposure in the infrastructure sector depressed the bottom line.

Tech Mahindra lost 3.03% after consolidated net profit fell 6.64% to Rs 1126.60 crore on 0.38% rise in total income to Rs 9059.40 crore in Q4 March 2019 over Q3 December 2018. The result was announced after market hours yesterday, 21 May 2019.

C P Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra said, the company had a satisfactory year, characterized by significant margin improvements, a growing digital portfolio and considerable increase in deal wins.

Maruti Suzuki India rose 0.68%. Maruti Suzuki India has added over 200 new workshops in 2018-19 to its nationwide network. This is the largest addition to service network by any automobile company in the country in a year. With this Maruti Suzuki's service network now is 3,634 workshops strong across 1,789 towns and cities. The announcement was made during market hours today, 22 May 2019.

DLF jumped 1.55% after consolidated net profit rose 76.22% to Rs 436.56 crore on 36.55% rise in total income to Rs 2788.27 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 21 May 2019.

J B Chemicals & Pharmaceuticals surged 5.13% after net profit rose 91.21% to Rs 42.18 crore on 19.55% rise in total income to Rs 394.44 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 21 May 2019.

ERIS Lifesciences fell 5.81% after consolidated net profit fell 3.92% to Rs 53.88 crore on 3.21% rise in total income to Rs 226.55 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 21 May 2019.

Overseas, European stocks were trading lower while Asian stocks were trading mixed Wednesday on relief over Washington's temporary relaxation of curbs against China's Huawei Technologies.

In US, shares of technology companies helped lift Wall Street on Tuesday after the United States temporarily eased curbs on China's Huawei Technologies Co, alleviating investor concerns about pressure on future corporate results in the sector.

The Commerce Department said late Monday it would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until 19 August 2019.

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