Landslide Win, New Landmark - The New Indian Express

Landslide Win, New Landmark

Published: 17th May 2014 06:00 AM

Last Updated: 17th May 2014 11:32 AM

NEW DELHI / MUMBAI: With a strong stable mandate delivered, Dalal Street on Friday welcomed Prime Minister designate Narendra Modi with the Sensex vaulting past 25,000-mark. The benchmark Sensex retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.

Industry hailed Modi’s landslide victory and hoped that with the new government in place the country will see a new and resurgent India where growth and stability would be the basic tenets of the economy.

“The outcome of the General Elections reaffirms India’s vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments,” Ajay Shriram, president, CII, said.

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.

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, tech and consumer durable fell on selling.

However 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.

NSE said it witnessed a record volume of trades at 1.18 crore in cash segment.

Besides, the bourse also recorded its highest-ever trades in equity derivative segment at 52.41 lakh.

The NSE recorded trades worth Rs 52,135.17 crore in the index futures and Rs 3.14 lakh crore in index options, the maximum recorded in a day so far, data shows.

The total turnover from equity derivatives stood at a record of about Rs 4.37 lakh crore.

These were the highest levels recorded on the stock exchange for a day, it said.

Investors use equity derivatives to hedge the risk associated with taking a position in stock by setting limits to the losses incurred by either a short or long position in a company’s shares.

Meanwhile, BSE on Friday saw a total of 2.37 lakh contracts traded on its equity derivative segment amounting to a turnover of Rs 7,749.44 crore.

On the cash segment, the BSE recorded a turnover of Rs 6,808.44 crore.

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