Adani Group stocks zoom ahead as Sensex, Nifty scale new-highs

• Nifty gained 270 points and BSE Sensex jumped by 998 points in early trade, hitting new highs.
• Two of Nifty50’s top five gainers, and four of the five top gainers on BSE were Adani group stocks.
• Bharti Airtel, NTPC and State Bank of India were amongst other top gainers in morning trade.
• Experts expect an across-the-board rally with favourable GDP and retail inflation data adding to state election results.
  

India’s benchmark indices, the Nifty and the Sensex, zoomed by over 1% in early trade on Monday hitting new-highs, after the ruling national party BJP won the mandate in three of the four states that went into elections on Sunday. The biggest benefactor of this trend were Adani Group stock, as they became the top gainers on both the indices as the group’s combined market cap crossed ₹12 lakh crore in morning trade.

Two of Nifty50’s top five gainers were Adani Enterprises and Adani Ports which gained by 8% and 5%, respectively. Four of the five top gainers on BSE were Adani stocks, led by Adani Green which jumped 8%. The three other stocks — Adani Total Gas, Adani Energy Solutions, Adani Power and Adani Enterprises gained by 6% each as of 9:30 am.

Bharti Airtel too continued with its last week’s dream run on Monday morning, along with government-owned companies NTPC and State Bank of India. Three of them gained by over 2% each.

Nifty50 jumped by over 279 points and is firmly over the 20,000 mark, after hitting a lifetime high last week. Sensex jumped by over 900 points in early trade. This euphoria on the BJP’s win was much expected, as the state routed the opposition Congress’s incumbent governments in Rajasthan and Chhattisgarh, while retaining Madhya Pradesh.

Nifty50 top gainers
*As of 9:30 am

‘Christmas cake is baked for a Santa Claus rally’

The state elections which were seen as a test for the upcoming national elections in 2024, will have given comfort to the stock markets.

"Market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better-than-expected. 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,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Many data points have been aiding the stock market rally. India’s GDP grew 7% in the second quarter. Retail inflation print also dropped to 4.87% in October.

“Investors globally eagerly await December for the famed Santa Claus Rally, and this morning, the Christmas Cake is baked for solid gains. Key catalysts include a resurgent optimism from FIIs, with Rs. 10,593 crores bought in the past week, a 15.1% YoY rise in GST collections, and BJP's state election results adding fuel to bullish sentiments,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Experts add that the global backdrop also is favourable with the US 10-year bond yield declining to 4.23%. They expect an across-the-board rally in stocks.