Mumbai: The Indian stock markets on Monday gave a big thumbs up to the BJP’s win in Madhya Pradesh, Chhattisgarh and Rajasthan as the market capitalisation of all listed companies surged by ₹4.09 lakh crore within minutes, reported ET. The Indian currency also gained 6 paise against the US dollar.
According to experts, strong macroeconomic data, BJP’s win and crude oil prices hovering below the 80-dollar mark contributed to the rally of stock markets.
The 30-share BSE Sensex jumped 877.43 points, or 1.30 per cent, to a new peak of 68,358.62 in early trade. The Nifty also climbed 284.80 points, or 1.41 per cent to hit its all-time high of 20,552.70.
The Adani Group companies were the biggest gainers in early trade. SBI, ICICI Bank, Bharti Airtel, NTPC and Larsen & Toubro also gained massively.
“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,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told PTI.
On Friday, Nifty ended up at an all-time high of 20,267.90. The same day, as exit polls poured in, the market cap of all companies listed in NSE reached the highest level of 4 trillion dollars. The values of all BSE companies had touched 4 trillion dollars on Wednesday.
Kapil Gupta, an economist at Nuvama Wealth Management, told Bloomberg that the election results would ease political risk; hence, boost market sentiment.
Meanwhile, gold prices also surpassed the 2100 dollar mark for the first time.
With inputs from agencies