Blockbuster day for market ahead of exit polls

It was a blockbuster day for the Indian market as Nifty50 reclaimed 11400 levels on a closing basis, while the S&P BSE Sensex had a touch and go moment with 38,000.

Most experts suggest that the move could be largely led by short-covering ahead of the exit polls which are due on May 19.

“Short covering could well have boosted markets today. Friday’s move somewhat indicates that exit poll may be in favour of BJP led NDA government,” Sanjeev Jain, AVP, Ashika Stock Broking told .

“Sharp up move of Axis Bank, Bajaj Finance, Kotak Mahindra Bank, HDFC twins, ITC has rallied the benchmark indices. More than 250-260 seats for BJP may be a big positive for the market. If any single party crosses the 240/250 seat mark, then there would be a significant rally in the market,” he said.

Investors’ wealth in terms of market capitalisation on the BSE rose by 1.4 lakh crore in a single session. The average market capitalisation of the BSE listed companies rose to Rs 146.59 lakh crore on May 17 compared to Rs 145.22 lakh crore recorded on Wednesday on the BSE.

The final tally on D-Street – the S&P BSE Sensex rose 537 points to 37,930 while the Nifty50 rallied 150 points to close at 11,407.

In terms of sectors, the S&P BSE Auto index rallied 2.4 percent, followed by the S&P BSE FMCG index which was up 2.3 percent, and the S&P BSE Finance and Banking index rose over 2 percent each.

The S&P BSE Midcap index rose 1.08 percent while the S&P BSE Smallcap index rose by 0.51 percent compared to 1.4 percent rally seen in the S&P BSE Sensex.

However, more than 250 stocks hit a fresh 52-week low which including Alkem Lab, Lakshmi Mills, Venky’s, Natco Pharma, Biocon among others.

Meanwhile, 40 stocks hit a fresh 52-week high on the BSE including Bajaj Finserv, Atul, Bajaj Finance, Kotak Bank, SRF, Titan Company, UPL, among  others

Stocks in News

Shares of Bajaj Finserv ended over 4 percent higher on May 17 on the back of strong Q4 earnings. Consolidated net profit in the quarter ended March 2019 rose 31.7 percent at Rs 839 crore, compared to Rs 637 crore in the year-ago period.

Bajaj Finance ended over 6 percent higher on May 17 at Rs 3310.20 per share. Most brokerage firms maintained their rating on Bajaj Finance, post-March quarter results, but raised their target prices up to Rs 3,600, which translates into an upside of over 10 percent from the current levels.

The share price of Bajaj Auto rose 3 percent after the company reported a 20 percent jump in its fourth quarter standalone net profit (Q4FY19) at Rs 1,305.60 crore.

The share price of Aurobindo Pharma fell 7 percent after USFDA classified the inspection as Official Action Indicated (OAI).

Shares of PNB Housing Finance fell more than 3 percent after its promoter company Punjab National Bank (PNB) terminated the share purchase agreement (SPA) entered into with Varde Holdings for the sale of the housing finance company.

Global Update

European stocks traded lower on Friday as trade fears ratcheted up. The pan-European STOXX 600 dropped 0.6 percent.

Asian shares tumbled amid ongoing tensions between Beijing and Washington. The Shanghai composite slipped 2.48 percent to close at 2,882.30 and the Shenzhen component dropped 3.15 percent to finish its trading day at 9,000.19.

Hong Kong’s Hang Seng index also declined more than 1 percent, Nikkei added 0.89 percent to close at 21,250.09, while the Topix index rose 1.09 percent to finish at 1,554.25.