An evening walk down D-St: Traders book profits as indices hit record highs; all eyes on May 23

Indian market started on a strong note on May 21 following the best day in a decade to hit a record high in morning trade. The S&P BSE Sensex hit a record high of 39,571.73 while the Nifty50 rose to a lifetime high of 11,883.55.

However, soon profit booking pulled the marked downwards. The S&P BSE Sensex saw a cut of nearly 400 points while the Nifty50 fell over 100 points.

The final tally – the S&P BSE Sensex plunged 382 points to close at 38,969 while the Nifty50 fell 119 points to end at 11,709.

The broader market outperformed the benchmark with BSE Midcap and Smallcap ending with losses of 0.9 percent and 0.6 percent, respectively.

Amongst the sectoral indices, except consumer durables that ended with gains of 0.7 percent, all the other sector indices ended in red with auto, banking and metal being the top losers.

It looks like the market seems to have factored in a victory of NDA on May 23, but an adverse result could lead to steep correction in markets, suggest experts.

“After a sharp up move n May 20, the Indian benchmark indices witnessed profit taking at higher levels due to nervousness amongst market participants ahead of the actual election results,” Jayant Manglik, President - Retail Distribution, Religare Broking Ltd told Moneycontrol.

“The key focus for market participants throughout this week would be on election outcome (May 23). The market is pricing in a clear victory for the NDA government and hence any disappointment on the result day could lead to a fall,” he said.

More than 50 stocks hit 52-week highs on the BSE that include Bajaj Finserv, Bajaj Finance, HDFC Bank, HDFC, Kotak Bank, L&T, Titan Company, Siemens, Axis Bank and SBI, among others.