Sensex, Nifty move by leaps and bounds as Exit polls predict Modi's return

Sensex zooms 1421 points and Nifty rallies 421 points on heavy buying

Closing Bell

The Sensex and the Nifty rose 3.75 per cent after the Exit polls on Sunday predicted Prime Minister Narendra Modi’s re-election, with most pollsters estimating a comfortable majority for the ruling NDA at the Centre.

After opening higher by 770 points, the Sensex has rallied higher further without any signs of slow down in the upward move.

The BSE benchmark index breezed past 39K levels during the day. The Sensex surged 1,421.90 points, or 3.75%, to settle 39,352.67. It touched a intraday high of 39,412.56 points.

The NSE Nifty too surged 421.10 points or 3.69% at 11,828.25.

Among the banking stocks, notable gainers were Bank of Baroda, which was up over 9%, IndusInd Bank was up 9%, SBI rose 8%, YES Bank gained nearly 7% today.

Among the FMCG, significant gainers include Godrej Ind shares were up by 7.30%, Proctor and Gamble Health rose 4.25%, and McDowell stock rose 4.15%.

In the metal segment, APLApollo jumped 10%, SAIL gained 8%, Welspun Corp was up 6.40% and National Aluminium gained 6.25%.

Among the Media stocks, Den Network climbed 7%, TV18Broadcast rose 6.60%, Eros Media jumped 6.40% and SunTV gained 5.60%


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BSE Cement Stocks


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Broker's Call


City Union Bank: (Rs 203)

Target Price Rs 220

JM Financial Research


City Union Bank reported another healthy quarter with net profit of Rs 175 crore (+15% YoY). Core operating profit growth was strong at Rs 312 crore (+18% YoY), aided by strong growth in core fees (+35% YoY). Core fee income was aided by strong uptick in recoveries from written-off accounts (+100% YoY to Rs 44 lakh). Asset quality was steady with GNPLs at 3% and PCR at 39%, while slippages witnessed an uptick to 2.7%. NIM remained strong at 4.4% in Q4FY19, as the investment book remained flat YoY, while borrowings declined 72% YoY.

CUB delivered RoA of 1.6% in FY19 (thereby meeting management guidance), despite a 48% YoY decline in treasury profits, mainly as a result of a 25% YoY decline in provisioning (credit cost down to 1.0% in FY19). Management continues to guide for a contraction in NIMs driven by a pick-up in competition going forward.

CUB has continued to deliver 1.5%+ RoAs in FY16-19, despite the challenging environment for the banking space and more so for MSME lending more recently.

The bank is valued at 2.5x FY21E BVPS, with the targe price at Rs 220.


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Sensex stocks


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Nifty 50 May Futures (11,748): Make use of declines to buy the contract

The domestic equity indices - the Sensex and the Nifty began the session with a gap-up open due to buying interest. Both the indices continued to trend upwards and have gained more than 2.5 per cent. The market breadth of the Nifty index is biased towards advances. The India VIX has nose-dived 16.8 per cent to 23.35. READ MORE



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Open Interest Spurts


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HDFC Equity Savings: Large-cap slant lends comfort

Investors looking for relatively higher returns than debt funds and wanting some equity exposure with lower volatility can consider investing in equity savings funds.

Equity saving funds, one of the hybrid fund categories, have been gaining investor attention lately, given their tax efficiency, and stability in returns. These funds combine debt, equity and arbitrage opportunities to offer better post-tax returns than bank fixed deposits.



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Sensex stocks


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Market feedback post Exit Poll by Mr. Abhijeet Bajpai, Co- Founder - Avighna Trades: "The exit poll results are out and the market reacted positively as the exit poll results predicted the current NDA government would continue. Although, speaking historically, the exit polls have been more wrong than right but it always affects market sentiments.

Today, markets are testing upper boundaries and will be totally dependent on news flow. Sensex may pass 39,200 and Nifty 11,780 on the absence of and negative trigger for selling but this is certainly no time for investing for long time. Investors may stay away from buying heavyweights and look for buying only into midcaps. For traders, it is good time to take some calculated risk on downside and buy some put options on Nifty and Bank Nifty, as risk reward ratio is not favorable for substantial upside from here."


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Dr Reddy's Labs down 6% as quarterly revenue, margins miss estimates

Shares of drugmaker Dr Reddy’s Lab fell as much as 6.7% to Rs 2,571 ; their biggest intraday loss since February 15, amidst a market rally.

The broader NSE index was up 2.75% at 11,721.95 , while the benchmark BSE index rose 2.82% to 38,998.90, post exit polls

The March-quarter revenue for Dr Reddy's rises to Rs 4,017 crore from Rs 3,535 crore, but numbers fell below analysts' estimates


Dr Reddy’s Q4 profit increases 44% to ₹434 crore

Dr Reddy’s Laboratories Ltd’s consolidated net profit increased 44 per cent to ₹434 crore in the fourth quarter ended March 31, 2019, as against ₹302 ...

Read More  

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Key market indices rose over 2.50 per cent and was trading stronger in the the mid-session.

The Sensex and the Nifty climbed higher early as investors bought equities heavily after the Exit polls on Sunday predicted Prime Minister Narendra Modi’s re-election, with most pollsters estimating a comfortable majority for the ruling NDA at the Centre.

The BSE benchmark Sensex surged 1,014.27 points, or 2.67%, to 38,949.39. It touched a high of 38,972.75 points in early trades.

The NSE Nifty too zoomed 300.10 points or 2.60% at 11,707.55.


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Sobha shares surge on strong Q4 numbers

Shares of Sobha Ltd rose as much as 10.7% to Rs 497.7, biggest per cent gain since January 17.

Real estate developer's March-quarter profit jumped 73.2% to Rs 113 crore helped by higher pre-sales volume. READ MORE



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State Bank of India hits 1-1/2-year high; chart suggests more upside

Shares of State Bank of India rose as much 7.52% to Rs 343.25 , highest since November 17, 2017

Indian stocks, the rupee and bonds rallied on Monday, a day after exit polls showed Prime Minister Narendra Modi would retain power with a bigger majority in the parliament.

SBI stock cuts above a resistance at Rs 340.06, the 86.4% Fibonacci projection level of the uptrend from March 23, 2018 low to August 10, 2018 high (wave 1).

A close above this level may lead to further gains up to Rs 352.86, the 100% level.




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Lupin: Margins pick up

Pharma major Lupin has reported a consolidated net profit of ₹289.6 crore in the fourth quarter of 2018-19, against the net loss of ₹783.5 crore in the same quarter in FY-18.

However, the consolidated net profit before exceptional items declined 20 per cent Y-o-Y during the quarter, mainly due to higher taxes. READ MORE


11 am

Rallis India: Sow seeds, reap rewards - Buy

Investors willing to stay put for one to two years, can buy the stock of Rallis India at the current price and accumulate if prices fall further. Weak results and negative rural sentiment have pulled the stock down in the last one year. However, the new management’s aggressive plans to expand over the next one year and revive the sagging growth in the domestic market, give hopes.


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ETFs or open-end index funds?

With actively managed equity funds struggling to keep up with market indices in the past couple of years, many Indian investors are now keen to give index investing a second chance.

Their first question usually is: What’s a good exchange-traded fund (ETF) to invest in?



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Sensex One-Month Chart



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Sensex stocks


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Indian Hotels up over 3% on fund raise plans

Indian Hotels  shares were up over 3 per cent today after the company reported that it has signed a strategic partnership with Singapore's sovereign wealth fund, GIC for an investment framework to the tune of about Rs 4,000 crore or $ 600 million over a period of three years from the date of signing.

This capital platform will be used to acquire fully operational hotels mainly in the luxury  and upscale segments in India.




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Broker's call: Bajaj Finance (Buy)


Bajaj Finance (Buy)

CMP: ₹3,301.2

Target: ₹3,600

Bucking the broader sector headwinds, Bajaj Finance (BAF) reported PAT of ₹1,180 crore, up 57 per cent y-o-y driven by its unparalleled customer acquisition prowess. During the quarter, the company added 2 million new customers, up 36 per cent y-o-y, with a 54 per cent y-o-y increase in new loans booked to 5.83 million. AUM growth continued to be spectacular at 41 per cent y-o-y driven by all the segments. Margins expanded by 73 bps y-o-y to 12 per cent in Q4 aided by pricing power.



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Rupee, bonds rally on exit polls

The Indian rupee and bonds rallied at market opening on Monday after exit polls suggested the election will give a clear mandate for the ruling party led coalition. But traders said market gains would be kept in check ahead of the vote counting on Thursday. READ MORE

The rupee opened at 69.55 at the interbank forex market.   -  Bloomberg


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Interestingly, despite the market rallying sharply higher, some of the major stocks witnessed some selling pressure today. Stocks such as Dr Reddy's, Bajaj Auto, Tech Mahindra, Zee Entertainment and Infosys were down in the range between 1 per cent and 3.50% today.


Nifty Top Losers


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Nifty Top Gainers


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Opening Bell

Key market indices climbed higher in early trading session as investors bought equities on hopes that the Modi government would return to power with a clear majority. The poll of polls predicted yesterday that the BJP-led government would get nearly 300 seats.

The BSE benchmark Sensex surged 780.36 points to 38,711.13. It touched a high of 38,892.89 points immediately from the opening levels.

The NSE Nifty too gained 229.10 points or 2.20% at 11,636.25.

Exit polls predict Modi’s return to power





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The benchmark BSE Sensex surged higher gaining 770 points in pre-session trade on Monday. The mood was clearly buoyant as the exit polls predicted full majority for the BJP-led National Democratic Alliance (NDA) in the 2019 Lok Sabha polls and hence a stable political regime.

The Sensex rose to 38,701.18, gaining 770.41 points. The NSE Nifty too rose 244 points, or 2.15 per cent at 11,651.90.



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High 5 SIPs

Here are the best equity funds suited for systematic investment plans that pass the filters for returns and consistency.

Those who invest in equity mutual funds are often advised by financial planners to take the SIP (systematic investment plan) route to average costs and benefit from volatile markets. But more often than not, the decision to invest is based on how a fund performs on a point-to-point basis — usually one-, three- and five-year returns — vis-à-vis its benchmark.



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Asian markets steady after steep losses; Saudi comments lift oil

Share markets in Asia got off to a steady start on Monday as investors tried to catch their breath following another week of escalating trade tensions between the United States and China. In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan tacked on 0.6 per cent after a steep 3 per cent loss the previous week.


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Index Outlook: Poll results may lead to volatility

The Sensex and the Nifty, which saw a strong rally last week, could face resistance

The Sensex and the Nifty turned volatile and eventually managed a corrective rally last week. The week ahead is crucial for investors, as the outcome of the Lok Sabha election could trigger turbulence. They should therefore tread with caution. The progress of the monsoon and the rupee movement also need to be watched. On the global front, US trade talks with China and minutes of the Fed meeting could keep the global markets on the edge.


Published on May 20, 2019