On Monday, domestic benchmark indices hit a fresh record high, buoyed by robust Q2 GDP results and the BJP's strong victory in state elections, fostering optimistic market sentiment.
The BSE Sensex demonstrated a robust performance, recording a gain of 920 points or 1.36 per cent, reaching 68,401 during the morning trade. The Nifty50 exhibited positive momentum, trading at 20,547, marking an increase of 279 points or 1.38 per cent around 10:10 am, reflecting a bullish market sentiment.
L&T, SBI, NTPC, ICICI Bank, and M&M emerged as the top performers within the Sensex, experiencing significant gains. On the flip side, Maruti, Nestle India, Sun Pharma, Asian Paints, and HCL Tech witnessed declines during the trading session.
Internationally, major indices on Wall Street ended the week with gains. The benchmark S&P 500 index reached its peak on Friday, driven by heightened confidence that the Federal Reserve is done with interest rate hikes. This positive sentiment not only reflected in the U.S. equity market but also prompted Foreign Institutional Investors (FIIs) to redirect their investments toward Indian equities.
“After the state election outcome and surprisingly strong GDP numbers, it is clear that there is no alternative to India in terms of political stability and economic growth. Now these two factors have created a canvas for a pre-election rally. There is a good chance that Nifty may hit the auspicious mark of 21,000 in December itself, while another 1000–2000 point rally can't be ruled out in the run-up to the general election,” said Sunil Nyati, Managing Director of Swastika Investment Ltd.