Business & Finance

Sensex spurts 140 points ahead of election outcome

Mumbai | The benchmark BSE Sensex ended 140 points higher Wednesday, bolstered by gains in banking and auto stocks ahead of the general election results.

After swinging over 300 points during the day, the 30-share index ended 140.41 points, or 0.36 per cent, higher at 39,110.21. The gauge hit an intra-day high of 39,249.08 and a low of 38,903.87.

In similar movement, the broader NSE Nifty rose 28.80 points, or 0.25 per cent, to 11,737.90.

IndusInd Bank was the biggest gainer in the Sensex pack, rallying 4.84 per cent, followed by Sun Pharma, Bajaj Auto, Bharti Airtel, Coal India, Tata Motors, SBI, ICICI Bank, Hero MotoCorp, ONGC, HDFC, Vedanta, L&T, Kotak Bank, Maruti and Axis Bank, ending up to 2.92 per cent higher.

On the other hand, Yes Bank, ITC, PowerGrid, TCS and HUL closed in the red, slipping up to 2.34 per cent.

According to experts, investor sentiment turned positive this week after most exit polls forecast a win for the Narendra Modi-led NDA. The results of the seven-phased polls will come out Thursday.

“Post the exit polls, one can say that the markets seem to have priced in a second term for the Modi government. However, lack of majority for BJP will prove to be a dampener for market mood. Hung elections remain a near term threat for the markets.

“Post elections, the focus will revert back to the fundamental issues such as earnings growth and increase in capex,” said Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas.

Unabated foreign fund inflows too buoyed market mood here, traders said.

Foreign institutional investors net bought equities worth Rs 1,185.44 crore on Tuesday, while domestic institutional investors sold shares to the tune of Rs 1,090.32 crore, provisional data available with stock exchanges showed.

Sectorally, the BSE bankex, capital goods, industrials, oil and gas, finance, auto and energy indices ended up to 0.89 per cent higher.

However, FMCG, consumer durables and teck declined up to 0.84 per cent.

Broader indices ended on a mixed note, with the BSE Midcap index dropping 0.16 per cent and BSE Smallcap gauge climbing 0.54 per cent.

Meanwhile, the Indian rupee appreciated marginally to 69.68 against the US dollar.

Brent crude, the global benchmark, was trading at USD 71.72 per barrel, higher by 0.64 per cent.

Globally, trading sentiment remained risk-averse amid the US-China trade dispute.

Bourses in Asia ended on a mixed note, while those in Europe were trading in the green in early deals.

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