Sensex rallies over 400 points after BJP’s resounding victory

Sensex rallies over 400 points after BJP’s resounding victory

The touchstone BSE Sensex rallied over 400 points in early trade on Friday a day after PM Narendra Modi-led BJP got an entire majority in the Lok Sabha elections.

In between the market euphoria, a rupee also appreciated 23 paise to 69.78 against the US dollar.

After touching a height of 39,223.85, the 30-share index was trading 170.51 points or 0.44 percent, higher at 38,981.90. Likewise, the broader NSE Nifty spurted 54.15 points, or 0.46 percent, to 11,711.20.

Sensex’s top gainers in morning trade include L&T,  SBI, Tata Motors, Bajaj Finance, Bharti Airtel, Asian Paints, M&M, ICICI Bank, IndusInd Bank, Infosys, HDFC twins, and Axis Bank, rising up to 2 percent.

While, NTPC, Bajaj Auto, ONGC, HCL Tech, TCS, Coal India, RIL and HUL fell up to 2 percent.

In the Last session, For the first time ever the BSE Sensex rising over 1,000 points to touch the 40,000-mark following the BJP’s stellar electoral show, yet it could not assist the momentum as investors opted for cash in on the gains.

The Sensex finished 298.82 points, or 0.76 percent, which is lower to close at 38,811.39, although the Nifty settled 80.85 points, or 0.69 percent, down at 11,657.05.

PM Narendra Modi on Thursday led BJP (Bharatiya Janata Party) to a magnificent victory for the second term in government, winning with a perfect majority and on course to succeed to reach out the 300-seat mark in the 543-member Lok Sabha Polls.

As mentioned by Krishna Kumar Karwa, managing director-Emkay Global Financial Services, it was extremely critical from the country’s point of view, that there be a continuity of government, for the incomplete policy agenda of the National Democratic Alliance government to be taken to its logical conclusion.

Krishna Kumar Karwa added, “Global investors and even corporate India will be enthused with a stable and strong government at the center and we should expect robust foreign portfolio investment and foreign direct investment in the coming months.”

In between, Talking about the foreign institutional investors, they purchased equal worth Rs 1,352.20 crore, although domestic institutional investors vend shares to the tune of Rs 593.54 crore, temporary data available with stock exchanges showed.

Talking about another place of Asia, bourses in China, Korea, and Japan were trading on a negative note in their respective early sessions. The rupee valued by 21 paise to 69.81 contrast of the US dollar in opening trade on Friday.

Higher domestic equity markets and Strong FIIs inflows also buoyed sentiments for the rupee, forex dealers said. Brent crude, the global touchstone, was trading 1.21 percent higher at 68.57 per barrel.

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