Nifty fails to settle above 10,400 as BJP's tally in Gujarat narrows

Vinod Nair, Head of Research, Geojit Financial Services    Market recovered from the initial disruption after a clear victory for government in Gujarat and Himachal Pradesh state election. Increased investors sentiment will attract liquidity in the market while participants focused on the fulcrum of improvement in fundamentals to strengthen the valuation. Triggers like earnings season and global market movement will be closely watched for any earnings upgrade and US tax reform for the direction. 

Market breadth   The breadth, indicating the overall health of the market, was positive. On the BSE, 1,437 shares rose and 1,209 shares declined. A total of 178 shares were unchanged.

Broader markets   The S&P BSE Midcap index ended at record high level, up 0.7% to 17104, while the S&P BSE Smallcap index settled at 18252.68, up 0.4%. 

Jayant Manglik, President, Retail Distribution, Religare Securities    It was an eventful day as Nifty witnessed a swing of nearly 400-odd points in early trade and finally settled with gains of over half a percent. Initially, markets reacted sharply on negative side, citing unexpected lead by the Congress in Gujarat election, but not for long. The situation completely reversed in next few minutes as BJP took over Congress in both the states and progressed towards comfortable win. However, volatility remained high on stock-specific front, keeping the uneasiness intact.   Nifty has again reached closer to its record high, clearly indicates that bulls are in control. Participants will now be at ease as there's no major event ahead and global cues will take over. We suggest keeping stock-specific trading approach with bias on the positive side.

Sensex heatmap at close Source: BSE

Markets at close Index Current Pt. Change % Change   S&P BSE SENSEX 33,601.68 +138.71 +0.41   S&P BSE SENSEX 50 10,832.50 +48.05 +0.45   S&P BSE SENSEX Next 50 35,735.28 +266.81 +0.75   S&P BSE 100 10,851.02 +53.52 +0.50   S&P BSE Bharat 22 Index 3,723.82 +14.92 +0.40 Source: BSE

Buzzing stock   Shares of Eros International rose as much as 4% to Rs 204.50 after the Mumbai-based film distributor signed four film production deals with Drishyam Films, the company said in a filing to BSE.

Sectoral trend in last leg of trade Source: NSE

Markets check At 3:00 pm, the S&P BSE Sensex was trading at 33,604, up 141 points, while the broader Nifty50 was ruling at 10,397, up 64 points. Index Current Pt. Change % Change   S&P BSE SENSEX 33,622.40 +159.43 +0.48   S&P BSE SENSEX 50 10,843.36 +58.91 +0.55   S&P BSE SENSEX Next 50 35,752.64 +284.17 +0.80   S&P BSE 100 10,861.01 +63.51 +0.59   S&P BSE Bharat 22 Index 3,725.11 +16.21 +0.44 Source: BSE

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Ajay Bodke, CEO & Chief Portfolio Manager, PMS, Prabhudas Lilladher on Gujarat election verdict    BJP's convincing victory in Gujarat after overcoming 22 long years of so called 'anti-incumbancy' is particularly significant as it was achieved despite a virulently castiest  campaign unleashed by the Opposition. The demonizing of major structural reforms like the GST and demonetization  was squarely rejected by the electorate. This would reinforce government's resolve to roll-on reforms jaggarnaut benefiting the economy & markets. This would lead to an acceleration in foreign and domestic direct and portfolio investments.