MUMBAI: Indian stock markets rallied on Monday after the BJP-led government secured a majority in the latest state elections in Maharashtra.
The Nifty 50 index gained more than 1.45 per cent or 346.30 points to open at 24,253.55 points, while the BSE Sensex index surged 1,076 points or 1.36 percent to open at 80,193.47 points.
Experts noted that the election results have an impact on the markets today, and if past trends are followed, the markets may witness some rally amid the return of the BJP in the Maharashtra state elections.
Ajay Bagga Banking and Market Expert stated that “The just concluded elections in Maharashtra, the results of which were declared on November 23rd, will have a positive immediate impact on the stock markets. The landslide win for the BJP lead coalition in the Maharashtra state elections could lead to a short-term boost to the Indian stock markets which have been in a declining mode”
He further added “Investors will interpret this mandate as favourable for the capex and infrastructure push that is ongoing in Maharashtra. The beneficiary sectors of this election are industrials, infrastructure, manufacturing, real estate and financials”.
In the sectoral indices on the National Stock Exchange, Nifty Realty and Nifty PSU Bank rallied with a surge of more than 2 percent, while other major indices also gained more than 1.5 per cent, including Nifty Metal, Nifty Media, and Nifty Oil & Gas.
In the Nifty 50 list, 49 stocks gained during the opening session, while only one stock declined. Shri Finance opened as the top gainer in the Nifty 50.
The shares of the Adani Group also surged around 2 percent at the time of filing this report. Adani Green also climbed around 4 percent.
“We are most likely to break the falling 20-day average that lies at 24,030, which will be the first time that’d happen since the record high of 27th September. Seasonality trends between now and the end of the year have been historically positive, with the Nifty rising 80% of the time during this period with an average return of over 4 per cent” Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets, Japan and South Korea indices rallied. The Nikkei 225 index surged more than 1.5 percent, South Korea’s Kospi also rose by 1.5 percent, Taiwan’s Weighted Index was up by 0.48 percent, while Hong Kong’s Hang Seng index was down marginally by 0.14 percent at the time of filing this report. (ANI)