Stock Markets LIVE: India stocks may remain volatile amid surprise election outcome; Asia mixed

Stock Market LIVE on Wednesday, June 5, 2024: Indian equities soared as investors digest the unexpected Lok Sabha 2024 elections outcome. 

Hindustan Unilever, Nestle were the top gainers while Power Grid, L&T were the top laggards on BSE.

Broader markets too held gains. Nifty SmallCap zoomed 2.55 per cent while MidCap rose 2.38 per cent.

Sectorally, Nifty FMCG zoomed nearly 6 per cent, followed by Pharma (up 2.81 per cent) and Healthcare (up 2.63 per cent).

On Tuesday, investors saw a dramatic drop in their wealth, with stocks nosediving by Rs 39 trillion amid Lok Sabha election results 2024 concerns. The Sensex plummeted nearly 6,100 points to settle at 70,234 points, while the Nifty50 fell below the 21,300 mark during intra-day trading. READ MORE

The surge came after the company secured an order worth Rs 547 crore from Rail Vikas Nigam Limited (RVNL) READ MORE

Stock market strategy: Considering that the NDA forms the government, analysts believe it will pursue a balanced economic growth model, giving equal emphasis on investment and consumption growth. READ MORE

Despite infrastructure limitations, India is currently the world’s fastest-growing aviation market with demand surpassing the supply of jets. READ MORE

NLC India’s board of directors are set to meet on June 10, 2024 to consider and approve foreign currency loan through external commercial borrowings (ECB) up to $600 million. READ MORE

The final HSBC India Services purchasing managers’ index, compiled by S&P Global, fell to 60.2 last month from April’s 60.8, confounding a preliminary reading for a rise to 61.4. READ MORE

India May Services PMI at 60.2 as against 60.8 in April while its May Composite PMI was recorded at 60.5 versus 61.5 in April. 

>> Coalition has been formed for the welfare of the people

>> PM Modi, and Home Minister Amit Shah played a part in TDP’s victory in Andhra Pradesh

>> Coalition with NDA will address joblessness in AP

In a report on Wednesday, analysts at Kotak Institutional Equities said that they expect a reset in the market’s hitherto cavalier investment stance toward ‘narrative’ stocks.

“We have struggled with the implied growth and profitability assumptions embedded in the market cap. of several ‘narrative’ stocks (capital goods, electric utilities and PSUs). We find the risk-reward unfavorable for these companies, notwithstanding the sharp decline in stock prices on election day. Most of these ‘narrative’ stocks have risen sharply over the past 12-15 months. They offer a large downside to their fundamental fair values and trade at rich-to-bubble valuations,” analysts wrote in the report. 

Shares of Heritage Foods hit a record high of Rs 538, as they rallied 18 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes.

In the past three trading sessions, the stock of dairy products company has surged 34 per cent following the news that Chandrababu Naidu was set to become Andhra Pradesh Chief Minister for fourth term after Telugu Desam Party’s (TDP’s) landslide victory. In the past one month, the stock has zoomed 63 per cent. Read more

On Tuesday, June 04, as the key benchmark indices tumbled around 6 per cent, the broader indices – the Nifty MidCap and SmallCap – took a sharper knock and were down up to 8 per cent amid the surprise election outcome sell-off.