NEW DELHI: A day after Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) clinched a victory in three state elections, domestic equity market peaked to a new all-time high. The benchmark indices – BSE Sensex and NSE Nifty50 – registered one of their sharpest single-day gains in recent time. The rally made investors richer by about `6 lakh crore in a single session as the market capitalisation of all BSE-listed firms rose to Rs 343.5 lakh crore.
As per market experts, a thumping majority in state elections reinforces the belief that the ruling party will retain power in the 2024 general elections, providing stability and business-friendly policies. The election results coupled with favourable factors such as sharp growth in September quarter GDP numbers, robust GST collections and a fall in consumer inflation have made India an attractive market despite being more expensive than other emerging economies.
Pranav Haridasan, MD & CEO at Axis Securities, said election results have thrown a positive surprise, with the markets now assigning a greater probability of continuation of existing government policies beyond 2024 and decisive election mandates.
“This development removes a significant short-term overhang from the markets. We believe the near-term markets are likely to see strong interest, led by a rebound in industrial growth and a benign interest rate trajectory. Sunday’s events have lowered risk for investors in the short term, and they can expect a good closing for the calendar year,” said Haridasan.
The Sensex surged 1,437 points intraday to hit an all-time high of 68,918.22, while Nifty50 moved 435 points up and hit a fresh peak of 20,702.65. At close, Sensex was at 68,865.12, up 2.05% or 1,383.93 points the braider Nifty50 settled at 20,686.80, up 418.90 points, or 2.07%.
