Led by gains in PSU Banks, Pharma and Realty stocks, the 9 days losing streak of Benchmark indices ended today, i.e., Tuesday, May 14, 2019, with stock bourses closing in green, giving hopes of revival.
The S&P Bombay Stock Exchange (BSE) Sensex ended the day 228 points, or 0.61%, higher at 37,319. Out of 30 BSE constituents, 16 ended in the green. The Nifty50 index finished 74 points, or 0.66%, higher at 11,222. A total of 897 stocks advanced on NSE while 875 shares faced a decline.
The maximum gain was made by Nifty PSU Bank index which got up almost 3%. Nifty Pharma index rose 1.5% and Nifty IT index ended the day in red, down 1.2%.
A major factor responsible for putting an end to 9 days of turmoil are the comments from Washington and Beijing which helped soothe investor worries about a deepening trade row.
The President of United Sates – Donald Trump had said on Monday, i.e., May 13, 2019 that he was very optimistic about resolving the trade dispute. For the records, China has raised the duty on U.S. goods worth U.S. $ 60 billion from 10% to 25%. This was done in response to U.S raising the tariff on Chinese goods worth U.S. $ 200 billion, from 10% to 25%.
Another major factor impacting stock exchanges are the outcome of General Elections 2019. Indian stock markets enjoyed a big rally when the NDA coalition had a decisive victory in 2014, and the UPA coalition won in 2009. Markets are likely to react negatively if there is a hung parliament as it would mean political instability (as in 1996-98) and interruption of the reforms.
Besides, the Rupee also rose as much as 25 paise to hit intraday high of 70.28.
The BSE top gainers include Delta Corp, IIFL, DCM Shriram, Manappuram Finance and Reliance infra. The top losers were Jet Airways, SAIL, Sterlite Tech, Reliance Communications and Symphony. On NSE, Sun Pharma, Vedanta Ltd., Bharti Airtel, IndusInd Bank and State Bank of India (SBI) were the top gainers. Sun Pharma gained 6% and the rest of the above-mentioned counters moved up 2.3% to 5.4%. Tech Mahindra, Bajaj Finance, Bajaj Auto, Infosys and Tata Steel featuring as top losers.
