Sensex, Nifty recede from near record highs to end lower ahead of Modi 2.0 first cabinet meet; key points

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Published: May 31, 2019 5:09:37 PM

The leading benchmark indices receded from near record high levels on Friday following the appointment of portfolio to ministers in Modi 2.0.

With the portfolios of ministers in the Narendra Modi government allocated, equity market weighed other global and domestic factors for further cues.

The leading benchmark indices receded from near record high levels on Friday following the appointment of poftfolio to ministers in Modi 2.0. The 30-share Sensex fell more than 700 points from intra-day high of 40,122.24, but cut losses towards the end of the session. The Sensex closed 117.77 points lower at 39,714.20, while the Nifty ended the session 23 points down at 11,922.80. The all-time high mark of Sensex stands at 40,124.96, while the Nify’s record high stands at 12,041.15.

With the portfolios of ministers in the Narendra Modi government allocated, equity market weighed other global and domestic factors for further cues. “The markets have reacted negatively just because it expected Amit Shah to become one,” technical analyst Milan Vaishnav told Financial Express Online. However, now that the uncertainty around the portfolio allocation is over, the markets will look for other triggers, say experts. PM Narendra Modi-led cabinet will meet later this evening for the first time after staking claim.  

Yes Bank was the top loser in the Sensex pack, ending 4.27% lower. Other losers include ITC, Vedanta and M&M, shedding more than 2% each. Asian Paints, TCS and HCL Tech were among the gainers, jumping up to 2.43%. During the day, the index hit a low of 11,829.45 and a high of 12,039.25.JSW Steel, Tata Motors, Heromotocorp, Zee Entertainment, Bajaj Auto were among the biggest Nifty losers, shedding between 4.96% and 5.66%. TCS, GAIL, IOC, Infosys and Yes Bank were the biggest gainers jumping up to 7.25% in the week.

Also read: World Cup portfolio: RIL, HDFC Bank, Bajaj Finance stocks in IIFL’s dream team; check full list

Taking stock of the performance of the Indian markets vis-a-vis foreign peers, Sanjeev Zarbade, VP – PCG Research, Kotak Securities said that the domestic stock markets have bucked the trend on a weekly as well as montly basis. “Global markets are seen closing in the red for the week and for the month as well. Fears of an escalating trade war kept markets nervous for the month. Even economic data has been signaling a weakness in global economic activity. The latest Chinese Official PMI data being a case in point. On the positive side, Crude prices have corrected, which is a positive,” Sanjeev Zarbade said, adding that Indian equities ended the week up 0.7%, in contrast.

For the month, the Sensex rose 1.7% on the back of strong election mandate given to NDA. The key events to watch out going forward would be the RBI monetary policy meet in June and then the Union Budget in July, Zarbade added. The key events to watch out going forward would be the RBI monetary policy meet in June and then the Union Budget in July, he said.

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