The stock markets initiated trading at a historic peak, witnessing the Sensex surpassing the 69,000-point mark for the first time. This notable achievement followed the recent triumph of the ruling BJP in three out of the five state assembly elections in 2023.
The results of four states, declared on Sunday, triggered a substantial market surge on Monday. Within just 24 hours of reaching its highest spike, the Sensex and NSE Nifty achieved yet another record on Tuesday. This surge was attributed to the Bharatiya Janata Party’s success in crucial states such as Madhya Pradesh, Rajasthan, and Chhattisgarh.
The NSE Nifty 50 index exhibited a 0.52% rise, reaching 20,794.50 points, while the S&P BSE Sensex experienced a 0.50% increase, reaching 69,204.10 as of 9:51 a.m. IST.
The banking sector witnessed a 0.7% gain, with public sector banks registering a notable 1.3% increase. Financials and large-caps were favored by several brokerages, anticipating a rally in domestic equities leading up to the 2024 Lok Sabha elections.
Among Nifty companies, 27 recorded advances, while 23 faced declines. Top gainers included BPCL, Axis Bank, Adani Enterprises, Adani Ports, and Dr. Reddy, while HCL, Infosys, Bajaj Auto, Bajaj Finserv, and NTPC were among the top losers.
Despite the positive trends on the second day of the post-election market spike, the GIFT Nifty on the NSE IX experienced a decline of 43.5 points, closing at 20,817. This could potentially lead to a slow start for Dalal Street on Tuesday.
Varun Aggarwal, the founder and managing director of Profit Idea, highlighted the stability of oil prices on Tuesday amid uncertainty surrounding OPEC voluntary output cuts and ongoing tensions in the Middle East. Brent crude futures saw a modest increase of 13 cents, reaching USD 78.16 per barrel, while U.S. West Texas Intermediate crude futures rose by 18 cents to USD 73.22 per barrel.