Indian stock markets touched an all-time high just a day after Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) performed strongly in state assemblies elections. The poll results and strong performance by financial and energy stocks boosted the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
The NSE Nifty 50 index rose by 2.07 per cent to 20,686 points. This was record high for second session in a row. The S&P BSE Sensex rose by 2.05 per cent to close at 68,865.12
Both benchmark indices recorded their best sessions in more than year settling in the over-bought zone.
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BJP registered victory in three of the four state assembly polls the results of which came on Sunday (Dec 3).
“The party in Indian equity markets will go on,” said Gaurav Dua, senior vice president and head of capital market strategy at Sharekhan by BNP Paribas. Dua was quoted by Reuters
“The strong macroeconomic data, favourable political outcome from state assembly elections and improving global environment has moved sentiment to risk-on from risk-off,” Dua added.
He expected rise of another 5-8 per cent in the Nifty 50 till general elections in India due to be held in May 2024.
Major sectors shine
All-time highs were seen in 11 of 13 major sectors. Financial services rose up 3.23% energy stocks rose by 2.61%. These two sectors make up for about 46.5 per cent weightage in Nifty 50.
Heavyweights like Reliance Industries, HDFC Bank, ICICI Bank made gains between 1 per cent and 5 per cent.
Nifty had registerd record high just Friday this week. Strong quarterly growth and monthly factory activity data provided the boost
Larsen & Toubro claimed 3.9 per cent. Adani group stock registered a jump 1.4 per cent and 10 per cent. Eicher Motors hit a record high piggybacking on good sales in the month of November.
(With inputs from agencies)
Source: Thanks WIONews.com