Sensex and Nifty surged over 1% on Friday ahead of the exit poll results. The rise has been attributed to expectations of the Modi government winning the elections next week. Sensex and Nifty have rallied 10% from February lows till April 18 when they hit record highs of 39,487 and 11,856.
On Friday, Sensex closed 537.29 points or 1.44% higher at 37,930. Nifty too gained 150 points or 1.33% to end at 11,407. The indices logged major gains in two sessions ahead of campaigning for polls which ended Friday evening.
While Sensex gained 815 points during last two sessions, Nifty saw a rally of 250 points during the same period.
Since the beginning of the Lok Sabha elections on April 11, markets moved in a see-saw mode till April 26. Sensex which stood at 38,585 on April 10 closed at 39,067 on April 26. During the period, it hit a high of 39,275 and low of 38,564 on April 23, 2019.
However, Indian markets came under pressure for next nine sessions with Sensex losing 1,977 points or 5.06% since April 26 when it closed at 39,067 points. Investors lost Rs 8.53 lakh crore in market capitalisation during the period with the country slipping one slot on the world's most valuable markets list.
Slowdown of the economy, trade tensions between US and China, jitters over the outcome of Lok Sabha election, decline in economic indicators such as factory output and core sector growth, weakness in high-frequency indicators such as auto sales, and credit crunch in non-banking financial companies (NBFCs) led Sensex to log its fourth nine-day losing streak ever in the history of Indian financial markets.
Markets could not maintain their losing run in the tenth session on Thursday this week. While Sensex closed 278.60 points or 0.75 per cent higher at 37,393.48, Nifty ended 100 points up at 11,257 level, with 39 components in the green.
Experts said markets overcame global jitters due to US-China trade war and brought back their focus on the Lok Sabha elections.
"With the last phase of elections scheduled for Sunday, all-round buying across the sectors reflects market's anticipation that exit polls may indicate the formation of a stable government," said Jagannadham Thunuguntla, senior VP and head of research (Wealth), Centrum Broking Limited.
The Sensex and Nifty closed in the red for two days and three days in the green this week with Friday being the best day for the benchmarks in three-and-a-half months. During the week, the Sensex gained 467.78 points, or 1.24 per cent, and the Nifty advanced 128.25 points, or 1.13 per cent. On Friday, the rally was supported by gains in banking, auto and FMCG stocks.
While BSE bankex gained 643 points or 2% to 32,878, BSE auto index rallied 436 points or 2.45% to 18,229. FMCG index on BSE too ended 261 points or 2.31% higher at 11,601 level.
BSE midcap and smallcap indices closed 153 and 70 points higher at 14308 and 13887 levels, respectively. IT and pharma stocks led the losses with their BSE indices 129 and 132 points, respectively.
Healthcare stocks extended their losses after Indian pharma majors Dr Reddy's, Wockhardt, Aurobindo and Glenmark were named in an anti-trust lawsuit in the US. The companies have been accused of violating antitrust laws by fixing prices and allocating customers. However, all these firms have denied the accusations and stated they would defend themselves in the matter.
Market breadth was positive with 1374 stocks closing higher compared to 1141 ending in the red. 147 stocks remained unchanged.
Bajaj Finance (6.09%) , Hero MotoCorp (4.26%) and Maruti Suzuki (3.53%) were the top Sensex gainers. Bajaj Finance was the top gainer after the company reported a 50 per cent jump in net profit for the March quarter.
Bajaj Auto too ended higher following strong results. Of 30 Sensex stocks, 23 closed in the green. YES Bank (2.36%) , Vedanta (1.44%) and Infosys (1.42%) were the top Sensex losers.
Edited by Aseem Thapliyal