Brent crude futures, the international benchmark, hit a session low of $67.53 per barrel, trading down $3.15, or 4.5%, at $67.84 by 11:19 a.m. EDT (1519 GMT).
Meanwhile, U.S. West Texas Intermediate (WTI) crude futures were down by $3.21, or 5.2%, at $58.19 per barrel. The contract earlier fell to a session low of $57.92, the lowest since March 15.
Wall Street's main indexes fell more than 1% on Thursday, as technology stocks were hammered by fears that the U.S.-China trade spat could turn into a tech cold war between the two countries.
Beijing said Washington needs to correct its "wrong actions" for trade talks to continue after the United States blacklisted Huawei Technology Co Ltd last week.
Although the Trump administration temporarily eased curbs on the Chinese telecoms gear maker, tensions again mounted on Wednesday following reports that the United States was considering sanctions on Chinese video surveillance firm Hikvision.
We see more profit booking if the index trades below 11,590. In that case, Nifty may fall to the gap area in the 11,520-11,430 zone. However, a sustained trade above 11,700 can take the index higher to 11,860 and 11,950 levels
- Aditya Agarwala, Yes Securities
From trading perspective, 'sell on rise' would be the preferred strategy going forward. On the higher side, the 11,770-11,800 range shall act as a key area, where one can look to initiate fresh short positions
- Gaurav Ratnaparkhi, Sharekhan
The 11,590-615 range is largely expected to act as support, below which profit taking may intensify. Thursday’s price behaviour suggested that a short-term top is in place at 12,041. If Nifty slips below 11,614 level next session, it may eventually try to bridge the bullish gap in the 11,590-426 zone. However, as long as Nifty sustains above 11,400, corrections into the said gap zone, preferably around 11,500 level, can be considered as an opportunity to go long
- Mazhar Mohammad, Chartviewindia.in
ETMarkets Special Podcast: Nilesh Shah’s wish list from Modi 2.0
Nifty formed a Bearish Candle on the daily scale and closed negative by breaking below the previous two-days’ low of 11,680. It wiped out all the gains of the session and hovered near its weekly opening level. Nifty has to respect to its multiple support at 11,550 to regain strength and move towards 11,761 and then 11,888 levels, while below 11,550, weakness could be seen with every change in price setup
Special Podcast: YES Bank’s Shubhada Rao on what NDA-II must do to mend the economy
The stock market likes certainty. The strength of this mandate for the BJP assures stability in government, stability in governance and continuation of the development agenda for the next five years. In all likelihood, the market will remain euphoric in the coming days. Post that, the focus will shift back to corporate earnings, liquidity situation and global events. I am sanguine on the market move and reiterate my Nifty target of 13,000 in 2019
- Amar Ambani, President & Head of Research, YES Securities
The classic ‘BUY on expectation and SELL on news' seems to have played out in today’s session. Some of the passive money that had come in the last three months at lower levels could be going out due to global worries. The strong election verdict is beyond expectation and long only money, both from FIIs and local investors will surely resume in the next few trading sessions. Rich valuations of Nifty closer to 12,000 levels (i.e. 19x Fw PE ) provides limited upside in large caps. There could be some near term concerns emanating from earnings downgrades that is taking place in the ongoing results season. With stability and visibility back in place we feel investors should focus more on Mid & Small caps rather than large caps.
- Rusmik Oza, Head of Fundamental, Kotak Securities
Market is set for consolidation, however, volatility will certainly remain high in the near future. We advise maintaining a cautious view and focusing more on trade selection. Now the attention will return to corporate earnings, crude oil and US-China trade talks. Nifty has the next crucial support at 11,500. Among the sectoral indices, Metal and IT look weak while others may witness a mixed trend for some time
- Jayant Manglik, President - Retail Distribution, Religare Broking
We think for traders markets will enter a deeper correction zone and could see reversals around the budget. For investors markets are trading at very high valuations with Nifty’s P/E at 29 times, which keeps very little room for any margin of error. It is therefore better to let markets correct and invest rationally rather than emotionally
- Umesh Mehta, Head of Research, Samco Securities
The results have raised hopes of the issues being faced by the economy being tackled in a firm and prudent way. This is the first time in world history that a government that has introduced GST in a country has been voted back to power. Global issues may bother a bit less in the near term though their shadows can linger on. Earnings growth challenge will continue in the near term till monsoon spread and intensity is assured and liquidity situation eases
- Dhiraj Relli, MD & CEO, HDFC Securities
The government can continue the work commenced in very many areas and more importantly address issues like employment generation, rural distress, increasing farm income etc. For the insurance industry we look forward to private investment making its way back, automobile sector picking pace, increase in per capita income; which will help drive consumption and growth. Continuing the digital drive and formalization of the economy will help the financial sector a lot as this will lead to increased penetration of insurance, financial and investment products. The mature Indian electorate has once again delivered a decisive mandate, which can make “Resurgent India “as an idea whose time has come
- Mahesh Bala, MD & CEO, Kotak General Insurance
The task of the govt is cut out and they need to take bold decisive decisions to accelerate our economic growth. The Chinese economy grew at 10% + for over 20 years and that made China the superpower it is. The strong mandate to incumbent govt reflects the aspirations of young India to emerge a superpower in the next five years and to achieve that we need 10%+ GDP growth. Indian economy is at a cusp of economic revival and we are at the cusp of a new bull market in Indian equities. The govt needs to carry on the economic reforms agenda and focus on reviving the investment cycle. As growth recovers, we shall see revival in corporate earnings and that shall start a new bull market in Indian equities
A majority government is a strong point for economic growth as it instills confidence of continuance and unhindered policy decisions. With the second term, we expect the government to continue with its growth policies including the infrastructure development. We are sure the government’s focus on the Housing for All policy will be paramount. We congratulate the new government for its victory
- Shishir Baijal, CMD, Knight Frank India
The economic and strategic reforms undertaken in the last five years will get a fresh boost with the government led by Mr. Narendra Modi coming back to power. We expect the markets to continue to be bullish going forward this year. From here on, any meaningful correction on the backdrop of global volatility will be lapped up by the market. Our advice is to buy corrections and stay invested
- Dharmesh Kant, Head of Retail Research at IndiaNivesh Securities
CLOSING BELL: After 1,000-point rally, Sensex gives up all gains to profit booking & ends 299 pts lower; Nifty slips below 11,700
Market is looking at the second term of Modi Sarkar to build on the foundation laid in the last term. India has good macros in form of low inflation, better tax compliance, fiscal prudence, high FDI and manageable current account deficit if oil remains at current levels. Now market believes that stage is set for accelerating growth to higher level by tackling certain challenges like revival of investment and support consumption growth. Changing the orbit of Indian GDP growth from current 7% level to higher level (eventually to aspirational double digit growth) is what markets are expecting from the second term of the Govt. Markets are pricing in double digit earnings growth over next few years. From a risk-reward point of view, the market is delicately balanced. The direction of the market will depend on the steps that the government takes to accelerate growth
- Nilesh Shah, MD & CEO, Kotak Mutual Fund
Sensex drops 300 points after a 1,000 point rally
Modi is about to become the most powerful, democratically elected leader: Anand Mahindra
Size of the country (Land mass+population) X Size of the Economy X Size of the election mandate = Leader’s Power Q… https://t.co/sBfUbnyjw0
With the ruling NDA dispensation set for another five year term, the political risk has reduced and the market expectation for policy continuity has been addressed. We believe, the election related exuberance could propel the markets in the near term and pose an upside risk to our CY’19 Nifty target of 12,000. However, the current level of corporate fundamentals, trade wars and the progress of monsoon will weigh on the markets.
A Herculean challenge awaits the newly elected government on the economic front. Problems galore and addressing them on a war footing to rev-up the fast slowing economic engine with faltering consumption, moribund private sector investments & anemic exports should be the first priority. With limited fiscal space & build-up of massive off balance sheet liabilities, a focused effort to address strong & sustained revenue mobilization is necessary. Necessity to expend political capital very early-on to tackle factor reforms like land & labour to help generate employment opportunities for tens of millions of semi-skilled & unskilled workers is called for
- Ajay Bodke, CEO, PMS Prabhudas Lilladher
Sensex gives up 1,000-point gain, slips into red; Nifty below 11,750
Nifty Continues to remains structurally positive for the medium term; 12400/12500 can conquered going ahead. For the May series, we expect the index to trade in the range of 11700-12000. Consolidation at current levels is healthy as we have recently witnessed a strong recovery from 11100 levels to test 12000 on the higher sider. Broader market health is improving but we are seeing lack of momentum and hence expecting consolidation in the near term
- Sahaj Agrawal, Head of Derivatives , Kotak Securities
Look forward to India moving from $3 trn to $5trn: Rashesh Shah
The election verdict is out. Congrats to PM Modijee and the entire BJP team and to the NDA alliance. This will be s… https://t.co/qnmMHjRYsl
We believe they (Indian market) might have run up ahead of fundamentals buoyed by sentiment over the short term. It might be prudent to wait for the inherent fundamentals to catch up before waging big directional bets on the market right now.
Azamgarh, UP: SP's Akhilesh Yadav leads by 52,009 over BJP's Dinesh Lal Yadav 'Nirahua'
IT index in the red; top 10 losers
Price as on 23 May, 2019 12:41 PM, Click on company names for their live prices.
Nifty and Sensex tested 12,000 & 40,000 mark today. Based on the leads it is evident that NDA is coming back with likely single majority for BJP. Valuation wise Nifty at 12,000 trades at ~19x on Fw PE basis. Hence we see limited upside potential in the Nifty in the near future.
- Rusmik Oza, Head of Fundamental Research, Kotak Securities
ALERT: Reliance Capital exits MF biz, sells stake in JV to partner Japan's Nippon Life Insurance
(There will be) policy continuity, that India still has a very large good scale of domestically investible universal companies and the deal flows are more likely to happen now. A lot of the deals that were stuck in the past six months because of the elections, are more likely to happen now, so that itself will attract a lot of FDI. So I think there will be some buoyancy in terms of foreign flow into India, given how this election has panned out.
- Ramesh Damani, BSE Member
FMCG, IT and Metal indices trade lower
Global funds likely to increase India allocations: B Gopkumar, Reliance Securities
The ED and CEO at Reliance Securities said that the market was looking for stability, continuity and strong leadership rather than a fractured mandate - this has led to the new high. "We believe India allocation from global funds will increase and more ETF flows are likely over the short term that could drive the markets even higher."
BJP flirts with 330 mark, Congress struggles to reach 100
SBI hits record high, technicals suggest more upside
Shares of State Bank of India rose as much 5.3 per cent to a record high of Rs 359.15. Domestic shares surged to record highs as counting began on Thursday morning, with early trends indicating a major lead for Prime Minister Narendra Modi's National Democratic Alliance (NDA). SBI stock broke above resistance at Rs 352.86, the 100 per cent Fibonacci projection level of the uptrend from March 23, 2018 low to August 10, 2018 high.
Two big mistakes by Opposition leader Rahul Gandhi helped Prime Minister Narendra Modi in this election, says Dalal Street veteran Vijay Kedia. They included a ‘wink’ and a ‘cuss word.’
In an interaction with ETNow, the value investor said the NDA government had to return as there was no one who could replace Modi.
As trends suggest BJP winning, the market may make new highs and the rally we have seen on Monday will continue. In that case, Sensex can attempt to cross 41,500 and Nifty 12,300 and we can see profit booking at that level. Reaction to Midcaps and SmallCaps will be interesting to see as they are trading at better valuations than market heavy weights.
- Romesh Tiwari, Head of Research, CapitalAim
This is a new beginning not only for the markets but for the whole country. India is on the way to be a super power leading the world.
- Motilal Oswal, CMD, MOFSL
Ajaya Sharma, ET NOW in coversation with executives MOSL's top guys
Sensex jumps over 900 points to scale Mt 40,000
Sensex less than 50 points away from 40k mark
ALERT: Nifty just 24 points away from 12,000 level
BJP leads in 300 seats
These stocks defy market trend, drop up to 20%
Price as on 23 May, 2019 10:07 AM, Click on company names for their live prices.
Vijay Kedia believes banking sector would lead the market rally going forward
Top 10 NSE gainers in early hours of the trading session
Price as on 23 May, 2019 09:36 AM, Click on company names for their live prices.
The market capitalisation of all BSE-listed firms jumped by Rs 2.30 lakh crore within the first 10 minutes of trade. At first stance, the early leads conformed to the exit poll projections, putting the NDA well ahead of its rivals.
Sensex extends gains, rallies 700 pts
OPENING BELL: Sensex surges 578 pts to hit a record high of 39,688 as NDA leads in vote count, Nifty tops 11,900 for first time
Podcast: Vote counting begins; Tatas line up major fund raising plans & more
Sensex climbs 200 pts, Nifty nears 11,900; rupee trades at 69.45 against dollar.
Singapore trading sets stage for gap-up start
Nifty futures on the Singapore Exchange were trading 68.50 points, or 0.58 per cent, lower at 11,848.50, indicating a gap-up start for the Nifty50.
F&O traders expect 5% swing
Nifty option sellers have baked in a 4.9 per cent movement in the benchmark index from current level of around 11,700 immediately after the poll results on May 23. That’s a 570-point movement either-side from 11,700. If the NDA wins comfortably, markets could potentially test 12,270 and if there’s an upset, the benchmark could correct to 11,130.