Domestic stocks dropped in volatile session of trade led by slide in HDFC Bank, Infosys and ICICI Bank. The barometer index, the S&P BSE Sensex, lost 382.87 points or 0.97% at 38,969.80. The Nifty 50 index lost 119.15 points or 1.01% at 11,709.10.
Profit booking emerged after domestic stocks logged strong gains yesterday, 20 May 2019 to settle at record high after most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls. The barometer index, the S&P BSE Sensex, surged 1,421.90 points or 3.75% at 39,352.67 and the Nifty 50 index surged 421.10 points or 3.69% at 11,828.25.
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. The counting of votes is slated for May 23.
Coming back to today's trade, local stocks nudged higher in early trade on buying demand in index pivotals with the Sensex and the Nifty, both, scaling record high. A bout of volatility was seen in morning trade as stocks regained strength soon after trimming gains. Stocks hovered in positive zone in mid-morning trade.
Stocks trimmed gains in early afternoon trade. Volatility ruled the roost as the key indices erased intraday gains to sink in negative zone in afternoon trade. Key indices extended losses in mid-afternoon trade. Indices dropped to day's low in late trade on fresh selling in index pivotals, with the Sensex sliding below 39,000 level.
The S&P BSE Mid-Cap index fell 0.84%. The S&P BSE Small-Cap index fell 0.61%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 975 shares rose and 1579 shares fell. A total of 158 shares were unchanged.
Index heavyweight Reliance Industries rose 1.08% to Rs 1,339.75
Tata Motors lost 7.05% after consolidated net profit dropped 47.42% to Rs 1117.48 crore on 4.28% fall in total income to Rs 87718.69 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 20 May 2019.
N Chandrasekaran, Chairman, Tata Motors said the company's domestic business delivered a resilient performance in the face of challenging market conditions. The company has continued to step up pace of innovation, improved market shares as well as profitability. In JLR, the company is continuing to face challenges in China which are addressing on priority.
Overseas, European shares were trading higher while most Asian shares ended higher after the United States temporarily eased restrictions on China's Huawei, easing trade tensions. The U.S. Commerce Department said it would allow Huawei Technologies to purchase American-made goods.
US stocks fell on Monday as the White House's restrictions on Chinese telecoms equipment maker Huawei Technologies Co weighed on the technology sector and raised concerns that the move would further inflame trade tensions between the United States and China.
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