Equity benchmark indices jump more than 1 pc to hit life-time peaks on December 4,2023
Mumbai: Stock Markets on Monday reacted very positively to BJP’s emphatic win in Rajasthan, Madhya Pradesh and Chhattisgarh Assembly elections. In the morning trade, BSE Sensex climbed 877.43 points to scale a new peak of 68,358.62, while the Nifty also jumped 284.80 points to hit its all-time high of 20,552.70.
Major gainers of Sensex firms: Adani Enterprises and Adani Ports were the top performers by gaining 6.79 per cent and 4.52 per cent respectively. SBI, ICICI Bank, Bharti Airtel, NTPC and Larsen & Toubro were others major gainers.
Maruti, Britannia and Dr Reddy’s Laboratories shares traded in Red.
Stock Exchange analysts were of the view that the Modi-powered BJP’s absolute majority in in Madhya Pradesh, Rajasthan and Chhattisgarh elections was also the reason for the positive sentiment in the markets. Equity benchmark indices have been maintaining their winning streak since last week on the back of robust macroeconomic numbers and unabated foreign fund inflows.
Commenting on the rise in Stock market, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better-than-expected. The market has already partly discounted a BJP victory with a 500 point rally during the last 4 sessions. But the mood is so exuberant that the rally will continue.”
However, a “restraining factor will be the valuations which are high and will get stretched further with the rally gaining momentum. In the near-term the market will ignore fundamentals and move up but soon high valuations will trigger some selling”, Vijayakumar added.
According to the data made available by the stock exchange, Foreign Institutional Investors (FIIs) bout shares shares worth Rs 1,589.61 crore on December 1, 2023.
Meanwhile, the Rupee appreciated 6 paise to 83.27 against the US dollar in early trade today. The rise in Rupee’s value was amid a positive trend in domestic equities and foreign fund inflows.
