Sensex regains losses, jumps 665 pts; Auto to banking stocks, 5 key factors moved your market

After witnessing extreme volatility in previous trading session, the benchmark index Sensex has finally started to perform in line with expectations of Lok Sabha Elections 2019. Investors welcomed an NDA government win by turning net buyers on Sensex so much ao that the index has surged by a massive 665 points and even logged an intraday high of 39,476.97. Simply put, Sensex has regained its losses by end of Thursday. Sensex on Friday, closed at 39,434.72 up by 623.33 points or 1.61%. 

Talking about today's performance, Sameer Kalra, Equity Research Analyst & Founder Target Investing said, "US market Future Indices and Asia Indices are negative as Secretary Treasury in his testimony communicated that there is no visit to China scheduled and G20 meeting of the heads is also not decided on along with Debt limit coming in late summer .The oil prices are at $68.62/bbl(1.28%) there was big drop in last two days given the trade war escalation might lead to demand fall which is speculative as of now and USDINR at 69.68(0.01%) has been stable even post such big fall in crude and strong mandate government return."

Kalra gives Neutral to Positive stance on Sensex, as Results show big victory for the ruling party achieving majority on its own. This would give continuity to the policies and work. Next even is RBI policy where a further rate cut of 25 bps might be getting factored.

Reason behind soaring flight of Sensex was the heavy buying in banking, auto, metal and capital goods stocks.Also, midcaps, large caps and small caps saw massive jump. 

Find out! These key factors that moved Sensex on Friday.

1. Massive uptick in major stocks!

It was buying in high valued companies on Sensex, that tapped the index upward. In gainers list, ICICI Bank took lead by ending at Rs 431.50 per piece up by 5.09%. The bank was followed by L&T at Rs 1,543.65 per piece up 4.60%, Bharti Airtel at Rs 353.35 per piece above 4.42%, Vedanta at Rs 163.85 per piece up 4.20% and Tata Motors at Rs 182.15 per piece above 4.09%. 

Other stocks like M&M, Tata Steel, SBI, Hero Motocorp, IndusInd Bank, Bajaj Finance, Maruti Suzuki, Axis Bank, HDFC Bank, Asian Paint, Infosys, Yes Bank, Power Grid, Kotak Bank and ITC up from 0.57% to 4%. 

2. Bullish banking stocks!

Since the start of this week, banking stocks have risen drastically. Maintaining its bullish stance, the S&P BSE Bankex index completed at 35,199.19 above a massive 938.36 points or 2.74%. Buyings in stocks like Bank of Baroda, ICICI Bank, SBI, IndusInd Bank, Federal Bank, Axis Bank, HDFC Bank, Yes Bank and Kotak Bank was so much that jumped from 0.50% to a whopping 8%. 

3. Buyings in auto, metal and capital goods:

After banking stocks, it would be capital goods which surged was second best pick of investors. The S&P BSE Capital Goods ended at 19,675.73 above 752.61 points or 3.98%. Stocks like Graphite, HEG, BEL, Suzlon, NBCC, DBL, L&T, ABB and BHEL were top performers.

Meanwhile, investors were also faithful in auto stocks, as the S&P BSE Auto index jumped by 544.77 points or 2.94% at 19,059.90. Every auto stock surged with Apollo Tyre taking lead, followed by Ashok Leyland, Exide Industries, MRF, Cummins India, Balkrishna Industries, M&M, Motherson Sumi, Bharat Forge, Hero Motocorp, Eicher Motors, TVS Motors, Maruti, Bosch and Bajaj Auto in the range of 0.31% to 6%. 

Finally, it was S&P BSE Metal which soared by 302.09 points or 2.88% ending at 10,789.93. Stocks like Jindal Steel, SAIL, Vedanta, JSW Steel, Tata Steel, National Aluminium, Hindustan Zinc, Hindalco, NMDC and Coal India rose by 0.23% to 6%. 

4. Steller performance of midcaps and small caps:

The S&P BSE MidCap rose by 294.87 points or 2.01% ending at 14,945.24. Stockss like Bank of India, JSW Energy, Union Bank, IDFC First Bank, Cholamandalam Finance, HUDCO, Canara Bank, Edelweiss, NBCC and Jindal Steel jumped between 6% to 9%. 

On the other hand, the S&P BSE SmallCap ended higher by 346.63 points or 2.42% at 14,699.56. 

5. Strengthening of Rupee: 

The Indian Rupee appreciated on Friday, against US dollar benchmark by ending at 69.528 up by 0.153 points or 0.22% at interbank forex market. 

According to a Reuters report, the rupee gained as much as 0.4% to touch a session high of 69.74 against the dollar, en route to a weekly gain of about 0.7%.

In previous trading session, the domestic currency finished 0.5% lower, after scaling a session peak of 69.38 when initial leads suggested a facile victory