Market remains in grip of Narendra Modi mania; Nifty scales new peak


Mumbai, May 23: Shares continued their northward journey for the second consecutive day as the benchmark CNX Nifty surged by another 91 points to end at a new closing peak of 7,367 today on hopes of economic reforms after a new BJP- led Government takes charge next week.

Shares of banking, infra, energy and PSE sectors firmed up sharply on persistent buying from investors.

Emphatic win of BJP and its allies in the just-ended Lok Sabha polls has created an euphoria in the equity market, which is riding high on hopes that the upcoming Narendra Modi Government will remove infrastructure bottlenecks and take steps to boost economic growth.

The 50-share Nifty resumed higher at 7,306.50 and traded in a range of 7,381.00 and 7,293.90 before settling at 7,367.10, showing a sharp gain of 90.70 points, or 1.25 per cent, over the previous close.

Top five gainers from the Nifty were SBI (9.63 per cent), Tata Power (6.39 per cent), Jindal Steel (5.95 per cent), PNB (5.35 per cent) and Maruti Suzuki (5.34 per cent). Top five losers were Hindalco (1.97 per cent), Kotak Bank (1.68 per cent), HDFC Bank (1.61 per cent), Infosys (1.42 per cent) and IndusInd Bank (1.17 per cent).

However, foreign institutional investors (FIIs) continued to sell shares as they pulled out Rs 294.99 crore yesterday, as per the provisional data with stock exchanges. Turnover in the cash segment improved further to Rs 26,018.34 crore from Rs 24,951.23 crore yesterday. A total of 17,745.73 lakh shares changed hands in 1,03,88,312 trades, while market capitalisation stood at Rs 84,40,644 crore.