Benchmark stock market ended the trading session with record gains as Dalal Street investors welcomed the Bharatiya Janata Party’s decisive electoral victories in the states of Madhya Pradesh, Rajasthan and Chhattisgarh.
The S&P BSE Sensex ended 2.05 per cent or 1,383.93 points higher at 68,865.12, while the NSE Nifty 50 settled 2.07 per cent or 418.90 points higher at 20,686.80. During the session, the 30-share Sensex reached an all-time high of 68,918.22, while the Nifty 50 rose to 20,702.65.
Broader market indices also registered record gains, with analysts indicating that the strong momentum on Dalal Street will continue.
Analysts believe that the strong performance of the BJP in the state elections will provide more stability for the domestic market in the run-up to the 2024 Lok Sabha elections, paving the way for more gains. They also noted that sectors like defence and railways will be major beneficiaries if the ruling party returns to power in 2024.
Major sectoral indices, including the Nifty Bank and Nifty Financial Services, were the top performers as each gained over 3 per cent. Nifty Oil and Gas also rose over 3 per cent during the session.
The top five gainers on the Nifty 50 were Eicher Motors, which rose 7.45 per cent to Rs 3,891.20 apiece. Adani Enterprises, Adani Ports, BPCL and ICICI Bank were the other top gainers. On the other hand, HDFC Life, Britannia, HCL Tech, Sun Pharma and Wipro were the top losers.
Aditya Gaggar, Director of Progressive Shares, said, “Bulls have shown their strong dominance in today’s trade and right from the beginning, the Index kept soaring higher and ended the session at a fresh high of 20,686.80 with gains of 418.90 points.”
“Except for the Media and Pharma, all other sectors ended the day with gains where Banking and Energy were the top performers. Mid and smallcap indices underperformed as buying was seen in the index-based stocks only,” he added.
“On the daily chart, the Index has posted a strong bullish candle which signifies a strong uptrend while looking at the lower time frame i.e. hourly charts, an extremely overbought condition was witnessed. Time or price-wise correction is warranted and one should enter on dips only,” Gaggar noted.