Market back to winning ways on F&O expiry day

Benchmark indices Thursday again hit their closing highs, after a day's breather, with the Sensex soaring 330 points and the Nifty gaining 85 points on the day of May derivatives expiry.

Index heavyweights RIL, HDFC and TCS mainly led the Sensex chart.

However, in percentage terms, NTPC was the top gainer on the Sensex, rallying 3.44 per cent. Bharti Airtel, Bajaj Finance, TCS, Yes Bank, HDFC, SBI and Reliance too gained up to 2.33 per cent.

On the other hand, Sun Pharma, M&M, IndusInd Bank, Vedanta and ONGC fell as much as 2.39 per cent.

After a positive opening, the 30-share Sensex soared to a high of 39,911.92 during the day. It finally closed at 39,831.97, up 329.92 points or 0.84 per cent -- its life-time closing high.

The broader Nifty too started on a high and went on to hit a high of 11,968.55 before settling the day at 11,945.90, rising 84.80 points or 0.71 per cent -- a record closing level for the index.

Sectorally, BSE power, utilities, telecom, energy, finance and banking indices ended with up to 1.58 per cent gains. While, BSE metal and realty indices featured among losers.

Broader BSE mid-cap and small-cap indices followed benchmarks to settle up to 0.40 per cent higher.

Analysts said that sentiment was also driven by renewed hopes from the new government as investors have been keenly awaiting the swearing-in ceremony of Narendra Modi and his cabinet ministers and allocation of key portfolios.

Asian bourses ended on a mixed note, while Europe was trading in the green in opening deals.

Meanwhile, the Indian rupee slipped marginally by 4 paise at 69.87 against the US dollar.

Brent crude, the global benchmark, slipped 0.06 per cent to 67.83 per barrel.

Foreign institutional investors (FIIs) bought equities worth Rs 1,664.74 crore on Thursday and domestic institutional investors (DIIs) offloaded shares to the tune of Rs 1,122.60 crore, provisional data available with stock exchanges showed.

"Indian indices ended May F&O expiry on a positive note as PM Narendra Modi is set to unveil list of Cabinet Minister today. Nifty closed 84 points positive at 11,945. Near-term events to be closely tracked are India's Q4FY19 GDP rate, infrastructure output for April, and foreign exchange reserves data... Auto sales data for the month of May to be released on June 1, followed by RBI monetary Policy on June 6," said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

As euphoria over BJP's landslide win in the Lok Sabha polls fades, markets will now shift focus on earnings visibility, onset of monsoon, various economic reforms and policies by way of forthcoming Union Budget, analysts said.

The BJP-led National Democratic Alliance (NDA) government is expected to continue its reform measures -- especially in infrastructure and agriculture sectors -- initiated during the first term.

On global front, US-China trade tariff tussle along with movements in crude oil prices will determine further trend in markets globally, they added.