Sensex advances by 623 pts after sweeping BJP win (Roundup)
Friday - May 24, 2019 5:02 pm , Category : BUSINESS
Mumbai, May 24 (IANS) Defying unfavourable global markets, domestic indices inched up on Friday as investors cheered the formation of a stable central government following the BJP's spectacular victory in the Lok Sabha elections.The volatility index or the 'VIX' reflected the same sentiment as it closed 15 per cent lower at 16.54. A decisive victory for the BJP-led NDA buoyed investors. The Sensex jumped by 623.33 points or 1.61 per cent to 39,434.72. It touched an intra-day high of 39,476.97 and a low of 38,824.26. The Nifty scaled up by 187.05 points or 1.60 per cent to 187.05. "The risk taking ability came back as the elections concluded with an overwhelming result. The market settled for a board based rally expecting better outlook for the economy in the next one to two quarters," said Vinod Nair, Head of Research, Geojit Financial Services Ltd. However, global markets continued to trade under pressure as British Prime Minister Theresa May said she will resign on June 7. May put in on her successor to find a parliament consensus on the Brexit issue. Meanwhile, US President Donald Trump labelled Chinese telecommunications giant Huawei Technologies Co Ltd "very dangerous". These among other reasons forced the Asian markets to close mixed trading near four-month lows on Friday, said Deepak Jasani of HDFC Securities. "A slide in crude oil prices also helped boost the market sentiments," he added. "The upward trend is likely to continue in the near-term and settle for a long-haul expecting the upcoming final budget," Vinod Nair added. However, there is a massive slowdown in the domestic economy as can be seen from the dismal IIP numbers as also Q4 earnings declared by many FMCG, automobiles and consumer durables companies. "Post the euphoria of a strong stable mandate at the Centre, the markets would be keenly looking at cabinet formation and whether the government is able to attract credible technocrats with specific domain knowledge in areas of finance and agriculture," said Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services.
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