The BSE Sensex surged over 1,000 points on Thursday, 23 May, to touch the 40,000-mark for the first time ever following the BJP's thumping electoral show, but could not sustain the euphoria as investors chose to cash in on the gains.
In similar movement, the broader NSE Nifty crossed the historic 12,000-level after early trends gave the BJP a comfortable majority in the Lok Sabha, but succumbed to profit booking towards the fag-end of the session.
- The 30-share Sensex tumbled 298.82 points, or 0.76 percent, to close at 38,811.39, while the Nifty settled 80.85 points, or 0.69 percent, lower at 11,657.05
- According to experts, markets had already priced in the election outcome and the focus would now shift to reforms, economic growth, monsoon and developments surrounding the bruising US-China trade conflict
- Interestingly, when the Narendra Modi government came to power on 16 May 2014, the Sensex had rallied 261.14 points, or 0.90 percent, to 24,121.74; and the Nifty jumped 79.85 points, or 1.12 percent, to 7,203
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Closing Bell: Markets Wipe Modi 2.0 Gains
Indian equity benchmarks closed on a volatile note after a record rally during the morning trade, that saw Sensex breach the 40,000 mark.
At close, the Sensex was down 298.82 points at 38811.39, while Nifty was down 55.40 points at 11682.50.
The fall in benchmark indices comes amid Lok Sabha election counting suggested second-term for Narendra Modi as India’s prime minister.
Sensex Wipes Gains
Markets plunged into losses after hitting all time high in the intra-day trade as investors indulged in profit-booking. At 3.10 pm, the BSE index was down 275 point or 0.70 percent at 38,835.06.
Sensex Down From Day-High, Testing 39,250-Levels
The BSE index, in afternoon trade, scaled down from its intra-day peak of 40,124.96 and is currently trading at 39,250-levels.
The broader NSE index is up half a percent and is trading just below the 11,800-mark.
Nifty PSU Bank Gains 4%
Nine out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty PSU Bank Index’s 3.8 percent gain.
On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.9 percent.