Bulls continue to party despite bouts of profit-booking

With politics taking the centre stage, markets largely ignoring somber global cues continued to trade with hefty gains of over 3.5% on counting trend showing landslide victory of Modi’s led party in general election, which is not only seen as positive development for the country men, but also foreign investors. Although continuing to trade off day’s high on profit-booking, both Sensex and Nifty were in vicinity of life-time high level, which was above the crucial 24,800 and 7,400 levels. Meanwhile, broader indices also participating aggressively into  the rally were trading higher with gains in the range of 1.25%-2.50%. The broad based rally witnessed at Dalal Street, was in absence of participation of defensive Information Technology (IT) and Healthcare stock. On the flip side, massive gains were witnessed in Banking, Realty and Metal counters among the rest. Meanwhile, in the high volume session, trade of over Rs 2.7 lakh crore was done so far. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1327:518; while 14 shares remained unchanged. The BSE Sensex is currently trading at 24823.43, up by 917.83 points or 3.84% after trading in a range of 25375.63 and 24271.54. There were 25 stocks advancing against 5 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 2.42%, while Small cap index up by 1.26%. The gaining sectoral indices on the BSE were Bankex up by 7.33%, Realty up by 7.12%, Metal up by 6.02%, Oil and Gas up by 5.11% and Power up by 4.71%. On the flip side, IT down by 0.42%, Healthcare down by 0.18% were the losing indices on BSE.    The top gainers on the Sensex were SSLT up by 11.66%, ICICI Bank up by 7.82%, Axis Bank up by 7.17%, SBI up by 7.16% and Coal India up by 6.38%. On the flip side, Dr Reddy’s Lab down by 2.50%, Infosys down by 1.07%, Wipro down by 0.86%, HUL down by 0.71% and Cipla down by 0.52%. Meanwhile, buoyed by declining inflation, Finance Secretary Arvind Mayaram has raised optimism in the downhill trajectory of the inflation figures, but has warned government of remaining cautious over the impact of possible deficiency in monsoon due to the El Nino effect. Mayaram exuded hopes of inflation moderating further in the current financial year, after Wholesale Price Index (WPI) in April slowed to two month low at 5.2% from 5.7% in the previous month, mainly due to easing food and fuel prices. Although, the finance Secretary warned of the impact of possible deficiency in monsoon, at the same time pointed at the adequate stocks of food-grains that the country had to meet any eventuality and therefore underscored of little power that sluggish monsoon had to disrupt supply chain. On the retail inflation which shot up to 3-month high in April, Mayaram said that the Consumer Price Index (CPI) generally inches up during the elections and hence dismissed the case of the factor being worrisome, especially because of it being the latest data print ahead of RBI’s monetary policy review on June 3. Meanwhile, on the fiscal deficit front, Mayaram said it would be 4.6% of the GDP in the last fiscal. The CNX Nifty is currently trading at 7,402.70, up by 279.55 points or 3.92% after trading in a range of 7,563.50 and 7,264.40. There were 43 stocks advancing against 7 declining on the index. The top gainers of the Nifty were SSLT up by 12.24%, PNB up by 10.21%, DLF up by 8.85%, IndusInd Bank up by 8.57% and Kotak Bank up by 8.54%. On the flip side, Dr Reddy’s Lab down by 2.52%, Tech Mahindra down by 1.66%, Infosys down by 0.88%, Wipro down by 0.75% and HUL down by 0.64% were the major losers on the index. Asian equity indices were trading in red; Hang Seng down by 0.30%, Straits Times down by 0.24%, and Nikkei 225 plunged 1.41%. While, Jakarta Index up by 0.39% and Shanghai Composite up by 0.02% were the only gainers amongst Asian pack. European markets got off to mixed start; with France’s CAC gaining by 0.09%, United Kingdom’s FTSE 100 adding 0.07%. On the flip side, Germany’s DAX was trading lower by 0.07%