The S&P BSE Sensex and Nifty50 extended losses on May 29 after Finance Minister Arun Jaitley recused himself from the new cabinet, citing health reasons. Profit taking at higher levels and volatility caused by May F&O expiry on May 30 weighed on the market.
In a letter to PM Modi, Jaitley requested for a reasonable time for his treatment and opted out of any responsibility for now in the new government.
The speculation over the news was making the rounds soon after the Lok Sabha results were announced. Now, all eyes will be on the new finance minister for Modi government.
“This does not come as a surprise to us as his health was having ups and downs especially during the last year of his term. It will be interesting to see who will be chosen as the new FM,” Sameer Kalra- Equity Research Analyst & Founder Target Investing told Moneycontrol.
“The option can be Piyush Goyal who has been interim FM previously and has a level of understanding of the concerns currently the stakeholders face due to previous interactions during his short tenure. This would be taken very positively by the markets and especially PSU Banks investors,” he said.
The S&P BSE Sensex snapped its 3-day winning streak and closed above 39,500 while Nifty50 failed to hold 11,900. It bounced back from 5-day exponential moving average placed at 11,838.
The final tally on D-Street – the S&P BSE Sensex slipped 247 points to 39,502 while the Nifty50 shed 67 points to close at 11,861.
The S&P BSE Metal index dropped 1.97 percent, followed by the S&P BSE Auto index, which was down 1.54 percent and the S&P BSE banking index that was down by 1.1 percent. IT and consumer durable stocks witnessed some buying.
Top Sensex gainers: Sun Pharma (up 2.4 percent), TCS (up 1.4 percent), and HCL Technologies (up 1.1 percent)
Top Sensex losers: SBI (down 3.2 percent), Tata Steel (down 2.7 percent), and ICICI Bank (down 2.6 percent).
Stocks in news:
Global brokerage houses have retained their positive stance on Sun Pharmaceutical Industries and see 14-31 percent potential upside after the fourth-quarter earnings, though few of them have slashed price target. Sun Pharma was also the top Sensex gainer, up 2.4 percent.
Shares of Bharti Airtel fell 2 percent after the promoter group Bharti Telecom reduced its holding to 41.24 percent.
Man Industries shed 10 percent after the company reported dismal numbers for the quarter ended March 2019.
Jaypee Infratech surged nearly 5 percent after Adani Group submitted a non-binding bid for the beleaguered company.
Info Edge shares gained 3.8 percent after good growth in operating income for March quarter.
European markets continued the downtrend due to the trade worries between the US and China.
Asian markets ended lower on May 29 following overnight losses from the US markets. Nikkei shed 1.21 percent at 21,003.37, Hang Seng slipped 0.48 percent and Shanghai Composite shed 0.16 percent at 2,914.70.