INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Indian stocks made a sharp pullback on Tuesday as the election results did not turn out to be as unfavourable as expected for the
ruling BJP.
But the sudden exit of Urjit Patel as RBI Governor did create a sense of anxiety among market participants
In a session marked by high volatility, the Sensex settled up 190 points, or 0.54 per cent, at 35,150.01
The Nifty50 ended the day at 10,549, up 60.70 points, or 0.58 per cent.
After posting over 500-point loss in the opening trade, triggered by
Patel's unexpected resignation, the Sensex recouped losses as the election outcome started to trickle in
A better-than-expected performance by the ruling BJP, against the ominous exit poll predictions, buoyed mood
In the Sensex kitty of stocks, barring 10, other constituents ended with gains with YES Bank leading
The private lender jumped 8.50 per cent to Rs 179.40
It was followed by Sun Pharma, Asian Paints, SBI, Kotak Mahindra Bank and Axis Bank that gained up to 6 per cent
HDFC Bank tanked to its two-week low today, the worst performer, which was followed by Bharti Airtel, Hero MotoCorp, Adani Ports, ICICI
Bank among others.
Barring telecom and oil and gas, all sectors ended higher on the BSE
The Consumer Durables index led the charge, with Healthcare, Consumer Discretionary, Goods and Services, FMCG, Basic Materials and IT in
tow.
Midcap and smallcap shares trumped the Sensex in terms of gains and closed 1.54 per cent up each.
Take a look at the factors that moved
market today.State election outcomeThe domestic markets had already discounted the state election results on Monday
Moreover, the BJP though lost elections in key states, the number of seats lost was lesser than what most exit polls had predicted
"Despite all the negative news bunching up together from RBI Governor resignation to election results, we have seen market nicely holding
back that probably reflects the fundamentals of the Indian economy and Indian market
If with all this bad news market is not breaking but recovering, that should give some confidence to optimist and bulls that bear market is
not yet ready to begin in India," said Nilesh Shah, MD, Kotak AMC in an interview to ET NOW.
Short covering in marketsSome short covering
was witnessed during the day that led to the recovery in markets in intraday trade.
There could have been traders who have taken position
based on exit polls or what they think the results are likely to be and sort of sometimes shorts take positions ahead of the event and they
tend to cover it up when the actual event happens
So one day event is just a reflection of what is happening technically in the market, said Nilesh Shetty, Quantum Mutual Fund in an
interaction with ET NOW.
Recovery in rupeeThe rupee recovered nearly 76 paise in intraday trade to 71.68 after plunging to four-week low in
The domestic currency was trading at 71.83 against the greenback at the time of writing this report
Oil under pressureOil prices were under pressure on Tuesday amid worries over global stock markets and doubts that planned output cuts led
by producer club OPEC will be enough to rein in oversupply
International Brent crude oil futures were at $60 per barrel at 0746 GMT, up 3 cents from their last close.
Expert-takeSubdued sentiment due
to RBI governors resignation and overhang of state election results prevailed at market opening even though US markets staged a smart
recovery from intra day lows
The negative trend was short lived as markets had already discounted the state election results yesterday and short covering was witnessed
during the day leading to markets turning positive
Among sectors, pharma and PSU banks saw a smart recovery
- Viral Berawala, CIO, Essel Mutual Fund
