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Dalal Street witnesses record highs as Nifty and Sensex close 2% in the green

ANI   

Dalal Street witnesses record highs as Nifty and Sensex close 2% in the green
  • ICICI Bank and SBI led with the maximum gains of 4.68% and 3.99%.
  • Wipro and Tata Motors defied the trend and traded in negative.
  • This was the biggest single-day jump since May 20, 2022 for the benchmarks.

India's benchmark indices, Sensex and Nifty, soared to unprecedented highs during Monday's market action. The Nifty rallied 2% to close at 20,686 while the Sensex jumped almost 1400 points to close at 68,865. This surge was fuelled by the recent triumph of the ruling Bharatiya Janata Party (BJP) in state elections, coupled with robust domestic macroeconomic data and mounting expectations of a US rate cut in March.

The 30-share BSE Sensex jumped 1,383.93 points, or 2.05%, to close at a lifetime high of 68,865.12. The index touched an intra-day record peak of 68,918.22. The barometer logged its biggest single-day jump since May 20, 2022.

The broader Nifty also climbed 418.90 points, or 2.07%, to hit its all-time closing high of 20,686.80. On the 50-stock benchmark Nifty, 44 closed with gains.

Among the Sensex firms, ICICI Bank and SBI led the index with the maximum gains of 4.68% and 3.99%, respectively. Other major gainers were Larsen & Toubro, Kotak Mahindra Bank and HDFC Bank.

On the other hand, Wipro and Tata Motors defied the trend and traded in negative.

"The benchmark index hits its all-time high following the landslide victory of BJP in elections in three states. It spurred a rally with an anticipation that the country will witness a stable government post the general elections next year," Vinod Nair, Head of Research at Geojit Financial Services, said.

As the Sensex and Nifty reached their all-time highs, market experts provided insights into the driving forces behind this impressive rally.

Sunil Shah attributed the surge to the favourable outcome of state election results, stating, "Only one reason I would accurate to this rally, Sensex is up by more than 900 points, the reason is the outcome of state election results and results are in favour of the ruling party".

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the significance of political stability and a reform-oriented government in driving market optimism.

He stated, "The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. The market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better than expected".

Vijaykumar further said, "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. The global backdrop also is favourable with the US 10-year bond yield declining to 4.23%. An across-the-board rally in stocks is in the offing. A restraining factor will be the valuations which are high and will get stretched further with the rally gaining momentum".

The Indian stock markets reflect a dynamic interplay of political events, macroeconomic indicators, and global factors, contributing to a complex and evolving financial landscape.

Investors remain watchful as the market navigates through these dynamics, balancing exuberance with underlying fundamentals.

(With text input from PTI)

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