Markets turn negative after touching record high on Narendra Modi-led BJP win; Sensex tumbles 299 points

After the BSE Sensex touched an all-time high of 40,000 points during intra-day with news of Narendra Modi-led National Democratic Alliance (NDA)’s decisive lead in the Lok Sabha polls, the 30-share index plunged 298.82 points, or 0.76 percent to close at 38,811.39 at end of trading on Thursday.

The Sensex shed early gains after investors booked profits after stocks soared to record highs after BJP's strong showing in the Lok Sabha polls.

The Nifty crossed the 12,000-level for the first-time-ever during intra-day trade but settled 80.85 points, or 0.69 percent, lower at 11,657.05.

 Markets turn negative after touching record high on Narendra Modi-led BJP win; Sensex tumbles 299 points

Representational image. Reuters

IndusInd Bank was the biggest gainer in the Sensex pack, rallying 5.23 percent, followed by Hero MotoCorp, Coal India, Yes Bank, PowerGrid, ICICI Bank, HCL Tech, L&T, Kotak Bank and Bharti Airtel, rising up to 1.56 percent.

On the other hand, Vedanta, ITC, Tata Motors, HDFC twins, Bajaj Finance, Sun Pharma, Tata Steel, TCS, ONGC and Infosys fell up to 5.53 percent.

Riding on a massive Modi wave sweeping through most parts of India, the BJP was set to return to power on Thursday as it led in 298 seats while the Congress trailed far behind with 52, according to trends released by the Election Commission for all 542 seats that went to polls.

"Markets were initially enthused to see the election results falling in line with the exit polls. However, the run-up to the D-day was so sharp that it turned out to be a sell on news phenomenon," said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management.

Participants would now be keen to know the future course of action for bringing the economy back on track, the solution to the liquidity situation, the union budget, onset and progress of monsoon in June and most importantly the earnings trajectory, he added.

According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment.

The rupee depreciated 37 paise to 70.04 against the US dollar in afternoon trade.

Globally, bourses in Asia ended in the red. Indices in Europe were also trading on a negative note in early deals.

Brent crude, the global oil benchmark, was trading 1.79 percent lower at $69.72 per barrel.

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Updated Date: May 23, 2019 16:37:01 IST