Indian markets bounced back after witnessing profit taking in the morning trade to reclaim 39,000 on the Sensex and 11.800 on Nifty50. Both Sensex and Nifty closed with gains of about 4 percent each for the week ended May 24.
Ignoring the muted global cues, benchmark indices reclaimed crucial resistance levels on May 24. Let’s look at the final tally on D-Street – the S&P BSE Sensex closed 623 points higher at 39,434 while Nifty50 rose 187 points to end at 11,844 on Friday.
India VIX cooled off which is a positive sign for the bulls and the rally to continue, suggest experts. India VIX fell down sharply by 14.7 percent on Friday to close at 16.54 levels.
Volatility index corrected by over 40 percent in the last week from 28.08 to 16.54 levels, registering the biggest two-day fall in 5 years. During the week, it touched 44-months high of 30.18 but fell drastically post the election outcome.
“The risk-taking ability came back as the elections concluded with the overwhelming result. The market settled for a board based rally expecting the better outlook for the economy in the next 1 to 2 quarter,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told .
“Volatility index halved to 16.5 compared to three days back, pushing mid and small caps across the market given an attractive valuation. This trend is likely to continue in the near-term and settle for a long-haul expecting the upcoming final budget,” he said.
As for the sectors, the S&P BSE Realty index rose 4.1 percent, followed by the S&P BSE Capital Goods index which gained 3.9 percent, and the S&P BSE Telecom index which gained 3.5 percent.
Top Sensex gainers: Bharti Airtel (up 4.4 percent), L&T (Up 4.6 percent), and ICICI bank (up 5 percent)
Top Sensex losers: HCL Tech (down 0.46 percent), and TCS (down 0.2 percent)
Stocks in news
The share price of Jet Airways slipped over 4 percent on May 24 after reports stated that Hinduja Group and Etihad Airways have failed to strike a deal to buy a stake in the cash-strapped airlines.
Gruh Finance shares shed 4 percent after HDFC sold some stake in March and May this year to meet RBI conditions.
Shares of JMC Projects gained 15 percent after the company secured orders worth Rs 616 crore.
Unichem Laboratories gained more than 4 percent after the company posted strong numbers for the quarter ended March 2019.
Sun TV Network fell 3 percent after the company reported weaker-than-expected operating results in the January-March quarter due to TRAI’s new regime. Brokerage houses slashed price target.
European markets are trading higher as trade war worries continue to put pressure on the global stocks.
Asian markets ended mixed on trade tension between the US and China. Shanghai Composite ended flat at 2,852.99, while Nikkei was down 0.16 percent at 21,117.22.
Kospi shed 0.69 percent at 2,045.31, while Hang Seng was up 0.32 percent at 27,353.93.
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