Continuing its blistering record-breaking run for the third trading session in a row, shares rallied on hope that the Modi-led govt will fast- track stalled projects, introduce reforms and revive sentiment
Mumbai : Euphoric investors’ fraternity and industries hailed the historic landslide victory for the Narendra Modi-led BJP sending the benchmark to illustrate a historic point amid expectations of sweeping economic reforms.
Continuing its blistering record-breaking run for the third trading session in a row, the bellwether Sensex blasted to conquer another lifetime closing high of 24,363.05, up over 241 points.
Financials, capital goods, power, infra and metal counters mainly spearheaded the surge even as mid and small cap stocks joined the party.
The landslide victory of BJP-led NDA in the elections is credit positive for India as a stable central government is expected to address the country’s economic challenges, a Moody’s report today.
“Moody’s also considers that the completion of the election will allow stalled policies relating to the corporate and infrastructure sectors to resume, a credit positive for the country’s corporates,” Moody’s VP and Senior Credit Officer Vikas Halan said.
He said a closer co-ordination between the central and state governments on clearances for mega projects and land use, two proposals outlined in the BJP’s manifesto, would address investment delays.
GVK Power & Infrastructure’s stock zoomed 20 per cent, while Lanco Infratech surged 19.93 per cent, GMR Infrastructure (16.96 per cent) and Jaiprakash Associates (14.79 per cent) on the BSE.
Shares of Suzlon Energy shot-up by 19.81 per cent, while Bharat Heavy Electricals Ltd jumped 16.94 per cent, Coal India (12.73 per cent), NTPC (10.35 per cent) and Adani Power (7.64 per cent). Led by strong gains in these stocks, the BSE Power index gained 10.15 per cent to 2,148.24.
India’s stock market are hitting record highs over the past few weeks, largely due to an outpouring of optimism that Narendra Modi led government, which swept into power with an absolute majority, would be able to speed up policy reforms to rejuvenate the country’s ailing economy which plunged into decade lows mangled with rising food prices and corruption.
Despite a strong start fuelled by investors’ optimism amid strong foreign funds buying, the key indices surrendered some early gains on profit-taking in select counters.
Shares of power equipment maker Bhel shot up by 17 per cent to settle at Rs 268.25 on the BSE after climbing as much as 18.98 per cent to Rs 272.95 after the company signed an initial agreement to set up a 200 MW plant in Indonesia.
A clutch of foreign brokerages like Nomura and Goldman Sachs have upgraded Sensex/Nifty targets.
Among sector indices, S&P BSE Mid-Cap Index, S&P BSE Oil and Gas Index, S&P BSE Power Index and S&P BSE Metal Index hit 52-week highs.
Significant buying interest was seen in shares of public sector companies. Shares of Bharat Electronics, NMDC, Gujarat Mineral Development Corp, NHPC and Container Corp of India ended up 2.3-15.1%.
Bank Nifty closed above 15000 points for the first time ever. At close, Bank Nifty was up 2.5% at 15222.15 points. Its constituents, YES Bank, Bank of Baroda, Bank of India, Canara Bank and Punjab National Bank, ended up 3.7-10.4%.
In the mid-cap space, 15 stocks hit lifetime highs, including City Union Bank, Federal Bank, Finolex Industries, Kajaria Ceramics, Repco Home Finance and Triveni Turbine. These stocks ended up 2.6-14.4%.