Sensex and Nifty Reach Record High Following BJP’s Election Wins in 3 States

Indian equities reached new record highs on Monday, with financials and energy stocks driving the market surge following state election results that boosted market sentiment in light of robust macroeconomic data and decreasing global interest rate expectations.

The NSE Nifty 50 index surged by 1.65% to 20,602.50 points, setting a new all-time high for the second consecutive session. The S&P BSE Sensex also climbed by 1.64% to reach a historic peak of 68,587.82 at 9:51 a.m. IST.

Financial services saw a rise of 1.8% and energy stocks increased by 2%, leading the sectoral gains.

Key players such as Reliance Industries, ICICI Bank, and HDFC Bank saw gains ranging from 1% to 3%.

Small and mid-cap stocks each gained around 1%, reaching new record highs as well.

The ruling Bharatiya Janata Party (BJP) secured significant wins in three out of four state assembly elections over the weekend.

“The outcome of the state elections will instill greater confidence in the continuity of the BJP-led government at the center, which is expected to drive the markets higher,” noted Anjali Verma and Ravi Kumar, research analysts at PhillipCapital.

The Nifty had reached a record high on Friday, supported by strong domestic macroeconomic indicators such as quarterly growth and monthly manufacturing activity.

“The market has already begun the pre-election rally for May 2024 since November, and this rally is anticipated to gain momentum following the state election results,” remarked Sunil Nyati, managing director of Swatika Investmart.

November saw the Nifty and Sensex record their strongest month in 2023, fueled by the return of foreign investments amidst an improved global economic outlook.

Stocks within the Adani group saw gains ranging from 3% to 9%, topping the charts in various sectoral indexes including metals and energy.