Key benchmark indices logged strong gains on last trading day of the week on steady buying demand in index pivotals. The barometer index, the S&P BSE Sensex, gained 623.33 points or 1.61% at 39,434.72, as per the provisional closing data. The Nifty 50 index gained 187.05 points or 1.6% at 11,844.10, as per the provisional closing data.
Sentiment was boosted by an overnight slide in crude oil prices. Narendra Modi-led NDA's thumping victory in Lok Sabha polls also supported buying. A strong mandate for the NDA could mean that economic reforms would be decisively implemented.
Intraday volatility was high. The Sensex settled above the psychological 39,000 mark after moving above and below that level in intraday trade. Local stocks drifted higher in early trade on buying demand in index pivotals. A steep slide in crude oil prices also boosted investors sentiment in early trade. Key indices trimmed gains in morning trade. The indices once again regained strength in mid-morning trade. Stocks extended gains thereafter and hit fresh intraday high in late trade.
The S&P BSE Mid-Cap index rose 2.01%. The S&P BSE Small-Cap index rose 2.42%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1838 shares rose and 686 shares fell. A total of 156 shares were unchanged.
ICICI Bank (up 5.09%), L&T (up 4.6%), Bharti Airtel (up 4.42%), Vedanta (up 4.2%) and Tata Motors (up 4.09%) edged higher from the Sensex pack.
NTPC (down 0.54%), TCS (down 0.2%) and Hindustan Unilever (down 0.1%) edged lower from the Sensex pack.
Infosys rose 1.17%. Infosys during market hours today, 24 May 2019 announced that it has completed the formation of a strategic partnership with ABN AMRO in the Netherlands by acquiring 75% of the shareholding in their wholly owned end-to-end mortgage administration service provider Stater N.V. This partnership strengthens Infosys' position as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies, and further enhances the company's strategy to help clients navigate their next digital transformation journeys.
The Indian electorate gave a decisive verdict in favour of the BJP and its allies yesterday, 23 May 2019. Latest trends showed that the Prime Minister Narendra Modi-led NDA is leading in 353 seats, while UPA is leading in 92 and others leading in 97 seats. The 2019 Lok Sabha polls for 542 seats were held from April 11 to May 19. A party or coalition needs 272 seats in parliament to form a government.
In commodity markets, crude oil prices plunged on Thursday, as trade tensions dampened the demand outlook. Brent for July 2019 settlement tumbled $3.23 a barrel or 4.55% to settle at $67.76 a barrel. The slide in global crude oil prices will help India in containing inflation, current account and fiscal deficits. India imports about 80% of its crude oil requirement.
Overseas, European shares advanced on Friday. Brexit developments will be closely monitored by investors, with British Prime Minister reportedly expected to announce a departure date on Friday. Asian shares were mixed as investors remained worried over trade tensions between the United States and China.
US stocks finished lower Thursday as big losses for the technology and energy sectors dragged on the broader market amid signs that trade tensions between the U.S. and China are escalating.
US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a U.S.-China trade deal. The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products.
In economic data, IHS Markit said its flash index of U.S. manufacturers fell to a 9 1/2-year low of 50.6 in May from 52.6 in April, while the firm's services index dropped to a 39-month low of 50.8 from 52.7.
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