The benchmark stock market witnessed a remarkable upswing in the trading session, spurred by the favorable electoral outcomes for the Bharatiya Janata Party (BJP) in Madhya Pradesh, Rajasthan, and Chhattisgarh, as acknowledged by investors on Dalal Street.
The S&P BSE Sensex concluded the session with a substantial gain of 2.05%, equivalent to 1,383.93 points, reaching a notable 68,865.12. Simultaneously, the NSE Nifty 50 exhibited a surge of 2.07%, translating to an increase of 418.90 points, settling at 20,686.80. Notably, the 30-share Sensex attained an unprecedented high of 68,918.22 during the session, while the Nifty 50 ascended to 20,702.65.
Market analysts highlighted the broader indices' exceptional gains, expressing optimism about the sustained momentum on Dalal Street. The prevailing sentiment suggests that the BJP's robust performance in the state elections will contribute to increased stability in the domestic market in the lead-up to the 2024 Lok Sabha elections, potentially fostering further gains. Projections also anticipate significant advantages for sectors like defense and railways if the ruling party secures power in 2024.
The major sectoral indices, including Nifty Bank and Nifty Financial Services, emerged as top performers, each recording gains exceeding 3%. Nifty Oil and Gas also experienced a notable rise, exceeding 3% in the course of the session.
Among the top gainers on the Nifty 50, Eicher Motors led with a substantial 7.45% increase to Rs 3,891.20 per share. Adani Enterprises, Adani Ports, BPCL, and ICICI Bank also featured among the leading gainers. Conversely, HDFC Life, Britannia, HCL Tech, Sun Pharma, and Wipro encountered declines, emerging as the top losers.
Aditya Gaggar, Director of Progressive Shares, commented on the bullish market dominance, noting that the Index showcased persistent upward movement, concluding the session at a new high of 20,686.80 with gains of 418.90 points. He emphasized that apart from the Media and Pharma sectors, all other sectors exhibited gains, with Banking and Energy emerging as the top performers. Additionally, Gaggar highlighted an overbought condition in the hourly charts, suggesting a potential correction, and advised entering the market during dips.
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