FIRST TRADE: Indices scale new record highs, Sensex surpasses 76,500 for the first time, Nifty breaches 23,300 ahead of Lok Sabha election results

The Indian stock markets, specifically the Bombay Stock Exchange's Sensitive Index (Sensex) and the National Stock Exchange's Nifty50 index, reached new all-time highs on May 17, 2019. The Sensex closed at a record-breaking 76,019.65 points, marking an increase of approximately 2,041 points or 2.76 percent from its previous closing. The Nifty50 index also hit a new peak, closing at 23,155 points, which represented a rise of around 624.3 points or 2.77 percent.

These gains came just a day before the much-anticipated results of the 17th Lok Sabha elections were due to be announced. The Indian stock markets had been on a positive trend in the run-up to the elections, with investors showing confidence in the prospects of a stable government following the polls. The strong economic data and positive global cues also contributed to the upward trend in the markets.

The Sensex had last touched the 76,000-mark intra-day on March 18, 2019, but could not close above that level. The Nifty50 had last crossed the 23,000-mark intra-day on March 19, 2019, but similarly failed to close above that level until May 17, 2019.

The BSE Midcap and Smallcap indices also participated in the rally, with the Midcap index closing up by 1.84 percent and the Smallcap index gaining 1.91 percent. The rupee was trading at around 69.44 to a US dollar.

The top gainers in the Sensex included HDFC Bank, Reliance Industries, and Infosys, which rose by 4.11 percent, 3.14 percent, and 4.11 percent respectively. The top losers were Vedanta Ltd., Housing Development Finance Corporation (HDFC), and Hero MotoCorp, which fell by 1.18 percent, 1.14 percent, and 1.11 percent respectively.

The broader markets also saw significant gains, with the BSE Smallcap and Midcap indices rising by 1.91 percent and 1.84 percent respectively. The BSE Auto index was up by 3.11 percent, while the BSE IT index gained 2.98 percent. The BSE Consumer Durables index was the top sectoral gainer, rising by 4.11 percent.

The positive sentiment in the markets was also reflected in the derivatives segment, with the Nifty Futures trading in the green. The June series of Nifty Futures was trading at a premium of Rs. 111 over the spot index.

The rally in the Indian stock markets came despite a weak trend in global markets, with major indices in Europe and the US trading in the red. The positive sentiment in the Indian markets was attributed to a strong Q4 earnings season and expectations of a stable government following the elections.

Investors were also encouraged by the Reserve Bank of India's decision to keep interest rates unchanged in its monetary policy review on May 14, 2019. The RBI kept the repo rate unchanged at 6.2 percent and the reverse repo rate at 6 percent. The central bank also announced that it would infuse Rs. 1.76 lakh crore through open market operations to boost liquidity in the system.

The Indian rupee was trading at around 69.44 to a US dollar, up by 11 paise from its previous close. The rupee had depreciated by around 1.1 percent against the US dollar in the previous week.

Overall, the Indian stock markets continued their upward trend on May 17, 2019, with the Sensex and Nifty50 indices scaling new all-time highs just a day before the Lok Sabha election results were due to be announced. The positive sentiment in the markets was attributed to a strong Q4 earnings season, expectations of a stable government following the elections, and the RBI's decision to keep interest rates unchanged.