NSE WITNESS RECORD NUMBER OF TRADES

Leading stock exchange NSE today said it witnessed a record volume of trades at 1.18 crore in cash segment on a day Narendra Modi stormed to power at Centre giving BJP its highest-ever tally in the Lok Sabha elections. Besides, the bourse today also recorded its highest-ever trades in equity derivative segment at 52.41 lakh. The NSE recorded trades worth Rs 52,135.17 crore in the index futures and Rs 3.14 lakh crore in index options, the maximum recorded in a day so far, data shows. The total turnover from equity derivatives stood at a record of about Rs 4.37 lakh crore today. These were the highest levels recorded on the stock exchange for a day, it said. Investors use equity derivatives to hedge the risk associated with taking a position in stock by setting limits to the losses incurred by either a short or long position in a company's shares. Meanwhile, BSE today saw a total of 2.37 lakh contracts traded on its equity derivative segment amounting to a turnover of Rs 7,749.44 crore. On the cash segment, the BSE recorded a turnover of Rs 6,808.44 crore.

INVESTOR WEALTH SURGE BY Rs.1 LAKH CRORES

Stock market investors today became richer by over Rs 1 lakh crore as the share market rose and the benchmark Sensex galloped to a new closing high enthused by the clear win of Narendra Modi-led BJP in Lok Sabha polls. While the Sensex touched a life-time high of 25,375.63 in early trade, it later retreated as profit-booking set in and closed at a record 24,121.74, logging a gain of 216.14 points. Investor wealth, measured by market capitalisation, soared by Rs 1 lakh crore to end at Rs 80.64 lakh crore. The 50-scrip Nifty of the NSE also crossed 7,500-mark for the first time in history to a high of 7,563.50, up 440.35 points. However, it came down at the fag-end to settle at 7,203.00, showing a rise of 79.85 points or 1.12 per cent. "With election verdict behind and a government with majority in place, focus will shift to ministerial allocation and policies. Priority of the new government would be to revive the investment climate in the country. Given the present status of economic condition and the manifesto of NDA, we are expecting enhanced focus in infrastructure space," said Sanjay Chawla, Chief Investment Officer, Baroda Pioneer AMC. In the last 5 years, consumption has led the growth. In the coming years, investments are expected to lead the growth. The new government is expected to ensure that investment environment is conducive to attract capital from both domestic and from overseas investors, he stated. Trends show that BJP alone would end up with nearly 280 seats, first time in about 30 years that a single party will win the majority in Indian Lok Sabha elections. Among the 30-Sensex components, SBI, HDFC Bank, ICICI Bank, Axis Bank, Larsen and Toubro, Reliance Industries, ONGC and NTPC clocked smart gains. Sesa Sterlite was the best performer with 11 per cent gain. Realty, banking, power, capital goods, refinery and metal counters attracted heavy buying interest while shares from IT, FMCG, pharma, teck and consumer durable fell on selling. "With politics taking the Centre stage, markets were seen rejoicing counting trend showing clear victory of BJP and set to form a stable government. Appreciation in rupee too aided the sentiments. Although gradual profit taking in the index majors retraced the index significantly by the end but it still managed to close with decent gains," said Jayant Manglik, President-retail distribution, Religare Securities Limited.

300 stocks hit 52-week high

Mirroring strong investor sentiment in the stock market that recorded lifetime highs, nearly 300 stocks hit their one-year peak on the BSE today celebrating the victory of Narendra Modi-led BJP in the Lok Sabha polls. As much as 278 stocks touched their 52-week high on the BSE with prominent names such as ACC, Adani Ports, Axis Bank, BHEL, Coal India, HDFC, HDFC Bank, ICICI Bank, IOB, ITC, L&T, Maruti Suzuki, NHPC, NMDC, ONGC, PNB, RIL, REC, SAIL, SBI, Tata Motors, Tata Power and Tata Steel. "This is an unprecedented election result and something that the markets are rightly rejoicing. A strong stable mandate was the need of the hour and it has been delivered even more decisively than the markets had hoped for," said Dinesh Thakkar, Chairman & Managing Director, Angel Broking. There is well-grounded expectation that the new government will usher in strong pro-reform policies and kick-start the investment cycle, he noted.
The benchmark Sensex surged 1,470 points to hit a new life-time high of 25,375.63 in early trade but retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.
Among the 13 BSE sectoral indices, realty and bankex stole the show, rising as much as 6 per cent.
From the 30-Sensex constituents, 18 ended the day in green with Sesa Sterlite Ltd leading the chart with 11.11 per cent rise.
"The fall from the sharp rally is most likely due to investors locking in profits after the huge surge in the morning, although it could also have to do with the expectations investors have on how many seats the NDA will actually grab and whether the BJP will, on its own, be able to grab the required 272 seats on its own," said Raghu Kumar, Cofounder, RKSV.
Trends show that BJP alone would end up with nearly 280 seats, first time in about 30 years that a single party will win the majority in Indian Lok Sabha elections.