Market

Closing bell: Sensex, Nifty surge over 3%, record biggest 1-day gains since May 2009

Updated : May 20, 2019 07:32 PM IST

BSE Sensex rose 1,421.90 points, or 3.75 percent, to settle at 39,352.67. The Nifty 50 surged 421.10 points, or 3.69 percent, to close at 11,828.25.

The Indian rupee has closed at 69.74, up 0.69 percent against the US dollar from its previous close of 70.22.

India’s benchmark 10-year bond yield closed trading at 7.29%, down 7 basis points on the day after briefly falling to a low of 7.27%

Closing bell: Sensex, Nifty surge over 3%, record biggest 1-day gains since May 2009

Indian shares recorded their biggest single-day performance on Monday after most exit poll results of the 2019 Lok Sabha elections projected better-than-expected gains for the Narendra Modi-led Bharatiya Janata Party (BJP) and its allies in the National Democratic Alliance (NDA). The BSE Sensex and the Nifty 50 settled over 3.5 percent higher. A News18-Ipsos poll projected NDA to win 336 seats out of the total 543 Lok Sabha seats and only 82 seats to Congress-led United Progressive Alliance. Final results of the general elections will be announced on May 23. Here are the key takeaways from the stock market today:

1) The BSE Sensex rose 1,421.90 points, or 3.75 percent, to settle at 39,352.67. Intraday, the 30-share index rose to a high of 39,412.56, mere 74.89 points shy of its record high.

2) The Nifty 50 surged 421.10 points, or 3.69 percent, to close at 11,828.25. The 50-share index hit an intraday high of 11,845.20, only 10.95 points away from its 52-week high of 11,856.15.

Last time the Sensex recorded such a big gain was on May 18, 2009, when it rallied 2,110.79 points to close at 14,284.21.

3) Both the indices recorded their biggest-single day gains since 2009. The Nifty Bank index, which rose 1,309 points, or 4.45 percent, registered its biggest gain ever. The Nifty Midcap index jumped nearly 687 points, its biggest one-day gain ever.

4) Twenty-eight of 30 shares in the Sensex basket closed higher, with IndusInd Bank, State Bank of India, Tata Motors, Yes Bank and Larsen and Toubro leading the pack by rising between 6.5 percent and 8.6 percent. HDFC, Reliance Industries, HDFC Bank and ICICI Bank were top contributors to Sensex. Bajaj Auto and Infosys fell 1.18 percent and 0.19 percent.

5) On the 50-share Nifty, 45 stocks posted gains led by Adani Ports, Indiabulls Housing Finance, IndusInd Bank, State Bank of India and Tata Motors, which rose 7.1 percent to 11 percent. Infosys, Tech Mahindra, Bajaj Auto, Zee Entertainment and Dr Reddy’s Laboratories fell up to 5.5 percent.

6) All the sectoral indices ended in green led by banking and financial services, realty, capital goods and industrials, rising around 5 percent. The volatility index slumped 15.67 percent.

7) Investors’ wealth rose by over Rs 5 lakh crore today. The average market capitalisation of the BSE listed companies rose to Rs 151.93 lakh crore on May 20 compared to Rs 146.58 lakh crore recorded on May 17, Friday, reported MoneyControl.

8) The Indian rupee has closed at 69.74, up 0.69 percent against the US dollar from its previous close of 70.22.

9) India’s benchmark 10-year bond yield closed trading at 7.29%, down 7 basis points on the day after briefly falling to a low of 7.27%, reported Reuters.

10) Analysts believe markets will continue to trade in green, but gains will be limited as the focus will shift to fundamentals and economic challenges in Indian and globally.

Naveen Kulkarni, head of research, Reliance Securities, said, "The exit polls have been better than market expectations with the ruling party getting a comfortable majority. However, the market has been rallying for the last two days and it has factored the information to some extent. The market is likely to rally further but the rally may not be significant as there are challenges of not so encouraging earnings growth, lower liquidity, slowing economy and global challenges. There could be sector specific rally like infrastructure and banking that could do well."

Motilal Oswal said, “Assuming, no material change in actual results vs. the exit poll predictions, we expect the market’s focus to revert to fundamentals post the election and government formation. Progress of monsoon, trends in rural consumption and events in debt market will be key near-term monitorables, in our view.”

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