Indian Stock Markets Surge as Political Gains Boost Investor Sentiment

Indian stock markets opened with gains following favorable assembly election results for the ruling party. The Nifty 50 and Sensex indices both rose, with market focus on the Reserve Bank of India's anticipated policy announcement. Sectoral indices were mostly in the green, buoyed by supportive investor sentiment.

Indian stock markets opened with significant gains on Wednesday, as investor confidence was bolstered by favorable assembly election results for the ruling party. The Nifty 50 index started at 25,065.80 points, a rise of 52.65 points or 0.21 percent, while the Sensex index climbed to 81,954.58 points, marking an increase of 319.77 points or 0.39 percent.

According to market experts, the Reserve Bank of India's (RBI) upcoming monetary policy announcement was a key event slated for later in the day. Nonetheless, most investors anticipated no changes in policy rates. "After sessions of corrections, India is witnessing support at the level of 25,800 for the Nifty50. Contrary to exit polls, the positive state election result has invigorated optimism in the domestic market. While RBI policy changes are unlikely, a shift to a neutral stance is possible, with attention turning to Q2 results where earnings might see marginal QoQ improvement," commented Vinod Nair, Head of Research at Geojit Financial Services.

Among sectoral indices on the National Stock Exchange, the Nifty PSU Bank index emerged as the leading gainer, with other indices also showing positive openings. Within the Nifty 50 list, 38 stocks recorded gains, 11 stocks decreased, and 1 remained unchanged.

"Nifty rebounded from predicted support at 24,750, closing slightly above the 25,000 mark. With Foreign Institutional Investors' long positions decreasing to 43 percent, Nifty might encounter resistance around the 25,100/25,150 range. A potential for short covering exists above this range. A break below the critical support of 24,750 could lead to another wave of selling towards the 24,500/24,300 range," explained Soni Patnaik, AVP, Derivatives Research Analyst at JM Financial Services. Meanwhile, other Asian markets showed varied trends on Wednesday; Japan's Nikkei 225 rose by 0.83 percent, whereas the Shanghai Composite experienced a steep decline of 5.61 percent. Hong Kong's Hang Seng index also saw a decrease of 3.04 percent. (ANI)

(With inputs from agencies.)