Modi win lifts Sensex past 25K; profit-booking curbs gains
The benchmark Sensex retreated as profit-booking set in and closed at 24,121.74
Mumbai: After vaulting past 25,000-mark on the victory of Narendra Modi-led BJP in Lok Sabha polls, the benchmark Sensex retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.
The 30-share bluechip index, which had gained over 1,560 points in five sessions previously, surged 1,470 points to hit a new life-time high of 25,375.63 in early trade fuelled by hopes that BJP government would fast-track reforms and accelerate economic activity. However, massive profit-taking pulled the Sensex down and it briefly slipped into negative territory to touch low of 23,873.16. At close, the Sensex ended at a new closing peak of 24,121.74, a rise of 216.14 points or 0.90 per cent -- extending gains for the second straight session. In terms of market capitalisation, investor wealth rose by Rs 1 lakh crore to end at Rs 80.64 lakh crore.
The 50-scrip Nifty of NSE also crossed 7,500-mark for the first time in history to a high of 7,563.50, up 440.35 points or 6.18 per cent. However, like Sensex, it came down at the fag end to settle at 7,203.00, showing a rise of 79.85 points or 1.12 per cent. "Markets have surely cheered the Modi-led BJP's win today, however major concerns in coming future is the economic recovery of the country, necessary actions to be taken related to reform measures and highlights in the coming Union Budget," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. Trends show that BJP alone would end up with nearly 280 seats, first time in about 30 years that a single party will win the majority in Indian Lok Sabha elections. "We remain bullish on Indian equities.
It may be early to book profits," foreign bank UBS said in a report adding that its Nifty target for end-2014 is 8,000. Among the 30-Sensex components, SBI (5.93 pc), HDFC Bank (2.11 pc), ICICI Bank (5.15 pc) Axis Bank (5.60 pc), Larsen and Toubro (3.52 pc), Reliance Industries (2.59 pc), ONGC (1.83 pc) and NTPC (2.01 pc) clocked smart gains. Sesa Sterlite was the best performer with 11 per cent gain. Realty, banking, power, capital goods, refinery and metal counters attracted heavy buying interest while shares from IT, FMCG, pharma, teck and consumer durable fell on selling.
IT shares were at the receiving end following rise in the rupee value. In the forex market, the rupee climbed to about 11-month high of 58.62 against the US dollar and was last trading at 58.98.