It was a roller coaster ride for the benchmark indices, with the Sensex and the Nifty hitting new record highs. The Sensex in intra day trade crossed the 40,000 points mark for the very first time, while the Nifty hit a new historic high of 12,000 points mark.
The surge was largely on the back of huge gains for the BJP led NDA in the General elections. However, weak global cues ensured that Sensex ended the day with losses of 299 points, while the Nifty closed lower by 81 points, even as the NDA was leading with 350 seats, way higher than 272 seats required for a complete majority. The BJP on its own has now secured a complete majority.
The Sensex fluctuated in a band of 1,400 points, but, ended lower, due to extremely weak global cues. Profit booking after the results also was responsible for the huge drop in the markets.
Stocks that remained resilient to the market fall, were Adani Ports, Zee Entertainment and Yes Bank. The fall in the markets were largely on account of the drop in heavyweights like ITC and HDFC Bank. Profit booking was seen in the defensives like IT and FMCG, which have a very good weight in the index.
Markets are expected to exhibit greater volatility in the coming days, though the chances of an upside are even greater. Meanwhile, the rupee was trading with losses at 69.85 to the dollar.