BJP's Wins Propel Indian Markets Upward

The Indian stock markets surged after the BJP-led coalition secured a victory in Maharashtra's state elections. Significant gains were observed in the Nifty 50 and BSE Sensex indices. Experts foresee a positive impact on capex and infrastructure, with key sectoral indices also seeing substantial increases.

The Indian stock markets experienced a significant upturn on Monday following the BJP-led coalition's triumph in the Maharashtra state elections. The Nifty 50 index rose over 1.45%, opening at 24,253.55 points, while the BSE Sensex index soared 1,076 points, or 1.36%, to start the day at 80,193.47 points.

Market analysts emphasized that the election results influenced the markets positively today, suggesting a potential rally tied to the BJP's return in Maharashtra. Banking and market expert Ajay Bagga noted that the sweeping victory could offer a short-term stimulus to Indian markets, which were previously on a downtrend.

Bagga highlighted the positive sentiment among investors, who may view the election outcome as a boost for Maharashtra's capital expenditure and infrastructure initiatives. Sectors like industrials, infrastructure, manufacturing, real estate, and financials are expected to benefit. Notably, the Nifty Realty and Nifty PSU Bank indices saw increases exceeding 2%.

Of the Nifty 50 stocks, 49 advanced during the opening session, with Shri Finance emerging as the leading gainer. Shares of the Adani Group also improved, and Adani Green advanced by approximately 4%.

Akshay Chinchalkar from Axis Securities remarked on the probability of surpassing the falling 20-day average, marking a first since September 27th. He noted that historically, the Nifty index rises 80% of the time during this period, with an average return of over 4% before year's end. Moreover, Asian markets reflected similar positivity, with Japan's Nikkei 225 and South Korea's Kospi indices each climbing over 1.5%, while Taiwan's index was up 0.48%, juxtaposed against Hong Kong's slight decline.

(With inputs from agencies.)