Strong buying support catapulted the key benchmark indices to fresh intraday high in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 522.86 points or 1.35% at 39,334.25. The Nifty 50 index was up 161.95 points or 1.39% at 11,819.
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 was currently trading 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 and hit fresh intraday high in afternoon trade.
The S&P BSE Mid-Cap index was up 1.39%. The S&P BSE Small-Cap index was up 1.68%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1595 shares rose and 733 shares fell. A total of 132 shares were unchanged.
Auto shares were in demand. Escorts (up 4.96%), Ashok Leyland (up 4%), Mahindra & Mahindra (up 3.26%), Eicher Motors (up 3.14%), Tata Motors (up 2.69%), Hero MotoCorp (up 2.68%), Maruti Suzuki India (up 2.40%), TVS Motor Company (up 0.91%) and Bajaj Auto (up 0.34%), edged higher.
Most metal shares advanced. Jindal Steel & Power (up 4.18%), Hindustan Copper (up 3.73%), JSW Steel (up 2.79%), Steel Authority of India (up 2.65%), Tata Steel (up 1.63%), National Aluminium Company (up 0.92%), Hindalco Industries (up 0.86%), Hindustan Zinc (up 0.62%) and Vedanta (up 0.54%), edged higher. NMDC was down 0.42%.
Infosys rose 1.14%. 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.
On the political front, 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 349 seats, while UPA is leading in 82 and others leading in 96 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.
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.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)