Election Results Led To Fresh Highs For The Sensex And Nifty

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  • Election Results Led To Fresh Highs For The Sensex And Nifty

On Dalal Path, people could be seen beaming with happiness following the Bharatiya Janata Party’s (BJP) stunning victory in today’s assembly elections in Madhya Pradesh, Rajasthan, and Chhattisgarh. The domestic benchmark indexes were as happy to break records and hit new highs. The election results provided hope for early interest rate cuts in the United States for bulls. Investors enthusiastically bought shares across all sectors, expecting the BJP to stay in power at the Center and its policies to remain steady. As a result, the market value jumped by Rs 5.8 lakh crore in a single day.

The benchmark Sensex closed at 68,865, up 1,384 points, or 2.05%, from its starting position. Nifty finished at 20,687, up 419 points, or 2.1%. This is the biggest one-day gain in both indices in over 14 months. The two indexes closed at their highest position ever as a consequence.

Three significant Hindi belt states went to the BJP. By driving out the Congress, it took control of Madhya Pradesh and gained control of Chhattisgarh and Rajasthan. These included a closely contested election in Rajasthan and a surge of opposition to the BJP in Madhya Pradesh. All forecasts pointed to the Congress winning Chhattisgarh, but the BJP surprised everyone by winning handily.

It has also substantially allayed investors’ fears that money will be spent on populist projects if the ruling party’s performance declines, endangering the exchequer’s stability.

The stock market looks at where the money is spent and how stable is the process of formulating policies. The response of the market demonstrates that policies are being developed for growth rather than handouts. India’s economic potential is undeniable, and the cost of shares won’t be a worry as long as capital stays affordable and interest rates stay where they are. List all businesses that are listed on BSE.

Today, there was a 5.8 lakh crore gain in the total market capitalization. The shares of Life Insurance Corporation of India (LIC) were launched on May 17, 2022, and that day saw a surge in market value of this magnitude.

The GDP growth rate of the nation for the September quarter was 7.6%, surpassing the 6.5 projection provided by the Reserve Bank of India. In November, the manufacturing Purchasing Managers’ Index (PMI) increased to 56. Analysts predicted that this positive period in the market will last for the foreseeable future if institutional investors keep purchasing.

Everyone is assuming that there will be continuity in power and policies in 2024. As a result, international portfolio investors will increase their capital here. Foreign investors have also upped their purchases in the past few days. For a while now, domestic investors have also been making wise investments. However, the optimistic trend will only last as long as institutional investors keep purchasing and the assembly elections’ outcomes mirror those of the general elections. It’s also true that many people sell their shares after significant market increases, thus profit booking could occur shortly.

Today, domestic institutional investors invested almost Rs 5,000 crore in the market, while foreign portfolio investors purchased shares valued at Rs 2,073 crore. 1,480 shares finished down and 2,373 shares up on the Bombay Stock Exchange. The Bank Nifty reached a record peak of 46,431 up 3.6.

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