New Delhi: Market investors cheered the BJP’s big victory in three Hindi heartland states – Chattisgarh, Rajasthan and Madhya Pradesh. The market opened higher on Monday, with the benchmark Nifty 50 and Sensex scaling new highs. According to analysts, BJP’s victory indicated political stability and reduced fears of populism.
At 9.30 am, the Sensex was up over 1,000 points, or 1.5 percent, at 68,525 and the Nifty was up over 300 points, or 1.5 percent, near 20,600. The Sensex scaled a lifetime high of 68,587.82, while the Nifty hit a new all-time high of 20,602.50 soon after the market opened. All sectors also traded in the green.
The gains were broad-based as nearly five stocks rose for each one that fell. About 2,268 stocks gained, 457 fell and 129 were unchanged. Here are some key factors that ushered the strong rally in the market today according to MoneyControl:
“The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. Market likes political stability and a reform-oriented, market-friendly government,” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services was quoted as saying by MoneyControl.
Analysts also expect strong gains making way in the domestic market buoyed by the election results, with many betting on hopes of the Nifty hitting the 20,800 mark in the coming sessions, the report added.
