The benchmark indices on the stock market are buoyant with the Sensex up over 1,200 points and the broader Nifty50 crossing 16,670 mark.
At 12.15 PM, the BSE Sensex was up 1,208.93 points or 2.21 percent at 55,856.26. The Nifty50 was up 333.50 points or 2.04 percent up at 16,678.85.
Top gainers on the Nifty were Tata Motors (+6.48 percent), IndusInd Bank (+5.88 percent), HUL (+5.61 percent), Axis Bank (+5.44 percent), and Grasim (+5.13 percent). Major losers on the Nifty were Coal India (-4.55 percent), Hindalco (-1.70 percent), ONGC (-1.43 percent), Tech Mahindra (-1.06 percent), Power Grid (-0.07 percent).
Nitin Rao - CEO, InCred Wealth said, there twere two interesting trends from elections. Many of the States are showing their overwhelming acceptance to work done by the ruling party which is a good omen for investors going into the medium term as markets will discount continuity past general elections. An interesting sub-trend is also the emergence of a new creditable alternative to the existing parties on the National Stage with pro-populist policies around management efficiency. Both philosophies will lead to development focus as also efficiency in our governance methods, a good long-term indicator for Investments in India."
The country's largest lender State Bank of India was trading 4.45 percent higher at Rs 472. The Index heavyweight Reliance Industries was trading 1.68 per cent higher at Rs 2393.25.
Only two of the 30 scrips that are part of the Sensex were trading in the red. Tech Mahindra slipped 0.67 percent to Rs 1494.15. HCL Technologies fell 0.33 percent to Rs 1178.50.
Aishvarya Dadheech, Fund Manager, Ambit Asset Management, said, “The market saw a swift recovery post-a sharp pullback in commodities prices after Ukraine hinted at midway talks. Back home, the strong performance of the incumbent party in the state elections also provided much-needed support to the market. State elections' outcome took away the political instability risk in India for at least two years. We believe investors still need to be vigilant because the uncertainty of geopolitical standoff still looms large. Commodity prices are least likely to see a secular downturn even after war subsides because sanctions will continue to disrupt the global supply chain. Unless sanctions are withdrawn, the global markets can remain volatile in the coming months and India will not remain insulated.”