Sensex closes slightly higher as poll euphoria fades

The benchmark Sensex closed just 66 points in the green after moving within a narrow range on Tuesday, as poll euphoria appears to be fading. The Sensex closed 66.44 points, or 0.17 per cent higher than its previous close, at 39,749.73, after moving in the narrow range of 39,828.65 and 39,498.65. The Nifty too ended near-flat, up by just 4 points, or 0.03 per cent, at 11,928.75.

“Now that euphoria over the general election results is over, the market is waiting for signals of directional move,” said Romesh Tiwari, Head of Research, CapitalAim.

Supported by foreign fund inflows, the Indian rupee also closed slightly higher at Rs 69.69 to a US dollar.

“Today, there were no major triggers on the global as well domestic fronts and hence, we had a flat to positive start tad above the 11,950 mark,” said Angel Broking Chief Analyst (Technical and Derivatives) Sameet Chavan.

Dewan Housing Finance Corporation Ltd stocks on Tuesday fell nearly 7 per cent on reports that its promoter-directors have received a look out notice in connection financial fraud.

The company, however, denied it, saying that “its promoter-directors have not received any communication from the authorities regarding issuance of any look-out notice.” Manpasand Beverages hit the lower circuit breaker again on Tuesday for the second consecutive day, plunging by 20 pet cent, or Rs 17.60, to Rs 70.40 over their MD and CFO’s arrests on charges of GST fraud.

The trading in a particular stock and even an index is halted by the exchanges when it hits a lower or upper circuit breaker.

Zee Media surged by 6.36 per cent closing at the top of the Nifty50 stocks.

World stock markets were subdued on Tuesday as investors in New York and London returned from a long weekend and kept an eye on the US-China trade war.

France’s CAC 40 lost 0.5% to 5,312, while Germany’s DAX slipped 0.3% to 12,032. Britain’s FTSE 100 inched up less than 0.1% to 7,280.

Japan’s benchmark Nikkei 225 added 0.4% to finish at 21,260.14, while Australia’s S&P/ASX 200 gained 0.5% to 6,484.80. South Korea’s Kospi edged up 0.2% to 2,048.83. Hong Kong’s Hang Seng added 0.4% to 27,390.81, while the Shanghai Composite rose 0.6% to 27,390.81.

On Wall Street, which had been closed Monday for the Memorial Day holiday, futures for the Dow were up 0.1% while those for the S&P 500 were up 0.2%.

During a state visit to Japan, President Donald Trump pointed to the United States’ continuing “unbelievably large” trade imbalance with Japan, but also said a trade deal was coming this year. The U.S. seems to want to limit its trade tensions with some countries as it focuses on a battle with China that ranges from tariffs to technological supremacy.

The US and Chinese leaders are expected to meet in late June in what could be the next pivotal moment for the trade war and its impact on the economy and markets.

In Europe, investors were still digesting the results of the vote for the European Union’s parliament. Pro-EU forces retained a majority despite the rise of nationalist parties. That eases fears that nationalist parties might halt the bloc’s integration, though anti-EU sentiment could yet create tensions.

Separately, buoyed by the Central government’s continued focus on infrastructure projects, India’s steel demand is expected grow by about 7 per cent during the current fiscal, experts said on Tuesday.

“The Central government has been focusing on infrastructure projects like Sagarmala, Smart Cities and the new government would stick to its focus. I think steel demand is expected to grow by 7- 8 per cent in the 2019-20,” Institute for Steel Development and Growth (INSDAG) Director General Sushim Banerjee said.

Echoing him, JSW Steel President (Operations) Partha Sengupta also said the sector remains bullish on its outlook and steel consumption during the current fiscal would grow in the range of 6-7 per cent.

Addressing the Metals Conclave here organised by the Bengal Chamber of Commerce and Industry, Tata Steel Managing Director (Processing and Distribution) Abraham Stephanos said: “The opportunity in India for steel has tremendous potential as we become more and more urbanised.” “Steel industry in India is affected by structural inefficiencies,” he added.

State-run NMDC’s former Chairman Rana Som said steel companies in the country should expand and grow on the basis of equity capital rather than debt fund.

“The government should pull land available with public sector companies to set up steel plants, otherwise setting up of greenfield steel would be excessively difficult after the implementation of the current land acquisition act,” he said, Som also pointed out that many steel plants had been set up at locations from where imports became more feasible than sourcing raw materials from domestic mines.

Agencies