Market down again after a day’s respite; Sensex stood at 37,115 while Nifty50 finished at 11,157
After a day’s respite, the stock bourses have once again shown a downward trend with S&P Bombay Stock Exchange (BSE) Sensex dipping 204 points, or 0.55% at 37,115 and National Stock Exchange (NSE) Nifty50 ending 65 points, or 0.58% lower to settle at 11,157.
HDFC, Tata Motors, IndusInd Bank, ICICI Bank, and YES Bank weighed the Sensex down. Out of the 30 BSE constituents, 25 ended in the red. As regards NSE, about 1,084 stocks declined and 659 advanced.
The Jet Airways (India) shares fell down 4.18% to Rs. 123.70 on BSE after news about the resignation of its top executives flashed. The top executives who have put down their papers include its Chief Executive Officer (CEO) – Vinay Dube, Chief Finance Officer (CFO) & Deputy CEO – Amit Agarwal and Company Secretary – Kuldeep Sharma. Recently, Chief People Officer – Rahul Taneja and Executive Director – Gaurang Shetty had also quit.
Besides, shares of Union Bank of India plunged 10.03% to Rs. 71.30 apiece in the intra-day trade on Wednesday, May 15, 2019, after the bank announced that its net loss has widened to Rs. 3,370 crores in the fourth quarter of 2018-19, mainly on account of higher provisioning.
Both the benchmark indices traded higher for almost the entire day but gave up gains towards the end of the session as selling pressure returned. The advance-decline ratio on the BSE stood at 2:3, which means that for every 2 stocks which gained on the bourse, 3 stocks declined.
On Sensex, YES Bank was the worst performer with a fall of 8.45%. It was followed by Tata Motors (NSE -8.16%), IndusInd Bank (NSE -3.75%) and Sun Pharma (NSE -2.31%). The top gainer for the day were Bajaj Finance, ITC, Kotak Mahindra Bank and Infosys.
According to Vice President (V.P.) – Research (Derivatives), Kotak Securities – Sahaj Agrawal, “Nifty’s support was seen in the range of 10,850-10,900 and we expect the same to hold going ahead. Volatility to remain high on account of the upcoming election results. Post the recent correction, we remain structurally positive above 10,850 and await broader market health to improve before initiating aggressive longs.”
In has been observed in the past that election months generally witness high volatility. This has been true in the last four instances, where Sensex swung in the 14-36% around election results.
