In a historic response to the BJP’s victory in Madhya Pradesh, Chhattisgarh, and Rajasthan, the Indian stock markets witnessed a remarkable surge. The market capitalization of all listed companies soared by ₹4.09 lakh crore within minutes, as reported by ET. Concurrently, the Indian currency gained 6 paise against the US dollar.
The Bombay Stock Exchange (BSE) Sensex, comprising 30 shares, saw an impressive leap of 877.43 points, or 1.30%, reaching a new pinnacle of 68,358.62 in early trade. The Nifty, too, experienced a notable climb of 284.80 points, or 1.41%, achieving an all-time high of 20,552.70.
Adani Group companies emerged as the most significant gainers during early trading, joined by SBI, ICICI Bank, Bharti Airtel, NTPC, and Larsen & Toubro, all registering substantial gains.
Market experts attribute this surge to a combination of robust macroeconomic data, the BJP’s electoral success, and crude oil prices staying below the $80 mark. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed optimism about the market’s exuberant mood, stating that the rally is expected to continue.
The election results are seen as a positive development for market sentiment, easing political risk, as suggested by Kapil Gupta, an economist at Nuvama Wealth Management, in remarks to Bloomberg.
The surge follows the trend of the market favoring political stability and a reform-oriented, market-friendly government. The BJP victory was anticipated to some extent, with a 500-point rally observed in the last four sessions.
On a related note, gold prices breached the $2100 mark for the first time, reflecting the broader impact of the political and market dynamics.
Stay tuned for more updates on this evolving economic scenario.
