Experts feel that the recent mandate have thrown a positive surprise for the markets, which sees a greater probability of the continuation of existing government policies beyond 2024. The Nifty and Sensex have surged around 14% year-to-date
The action in the domestic market on December 4 was nothing short of euphoria as key indices Nifty 50 and Nifty Bank hit new all-time highs, clocking their biggest single-day gains since October 2022. After a sharp gap-up open, both the indices held on to their stellar gains as investors celebrated the BJP’s clean sweep in three key states.
“The assembly election results for key states of Madhya Pradesh, Rajasthan, Chhattisgarh and Telangana have thrown a positive surprise for the markets as they are now assigning a greater probability of continuation of existing government policies beyond 2024 and decisive election mandates,” said Pranav Haridasan, MD & CEO, Axis Securities.
At close, the Nifty was up 419 points or 2.1 percent higher at 20,687 while Nifty Bank settled with gains of 1,617 points or 3.61 percent at 46,431. Both the indices hit a record high of 20702.65 and 46484.45, respectively, earlier in the session.”This development removes a significant short-term overhang from the markets. We believe that the near-term markets are likely to see strong interest, led by a rebound in industrial growth and a benign interest rate trajectory,” Haridasan added.