In a remarkable turn of events, the Indian stock market witnessed significant gains, propelling both the Nifty 50 and the Sensex to record closing highs. This surge was fueled by the Bharatiya Janata Party’s (BJP) victories in three major states, instilling confidence among investors in the stability of the ruling government and its potential impact on the upcoming General Elections in 2024.


The Nifty 50 soared to a fresh record high of 20,702.65, while the Sensex reached a new peak of 68,918.22 during the trading session on Monday. The closing figures reflected the bullish trend, with Nifty 50 ending at 20,686.80, up 419 points (2.07%), and the Sensex closing with a gain of 1,384 points (2.05%) at 68,865.12. Both indices concluded the day at unprecedented closing peaks.

The upbeat market sentiment extended to midcap and smallcap stocks, with the BSE Midcap and Smallcap indices reaching their respective all-time highs of 35,124.23 and 41,221.91. The BSE Midcap index closed 1.19% higher at 34,999.76, while the Smallcap index ended 1.20% higher at 41,051.01.

The collective market capitalization of BSE-listed firms surged to nearly ₹343.5 lakh crore, marking an impressive increase of about ₹5.8 lakh crore in a single session from the previous ₹337.7 lakh crore.

Over 430 stocks, including Axis Bank, Bajaj Finserv, Bharti Airtel, and Larsen & Toubro, hit their fresh 52-week highs during intraday trade on BSE, indicating widespread positive market sentiment.

Top gainers in the Nifty 50 included Eicher Motors (7.45%), Adani Enterprises (6.78%), and Adani Ports (6.15%), contributing to the overall bullish trend. On the flip side, HDFC Life (0.83%), Britannia Industries (0.74%), and HCL Tech (0.13%) were among the top losers.

Sector-wise, banking, financial, and oil & gas stocks experienced robust gains, with the Nifty Bank, Nifty PSU Bank, and Nifty Private Bank indices surging by 3.61%, 3.85%, and 3.54%, respectively. Nifty Financial Services rose by 3.23%, while the Nifty Oil & Gas index recorded a gain of 3.15%.

Market experts attribute this rally to the optimistic outlook stemming from the BJP’s electoral victories, anticipating a stable government in the forthcoming General Elections. The positive sentiment is further fueled by expectations of continued foreign institutional investors’ value buying, aligned with positive global inflation data and a stable domestic macroeconomic environment.


Vinod Nair, Head of Research at Geojit Financial Services, emphasized the broad participation across sectors in the market rally and the anticipation of sustained foreign institutional investors’ value buying. The prevailing positive sentiment hints at a favorable global economic landscape and stable domestic macroeconomics.

Rupak De, Senior Technical Analyst at LKP Securities, highlighted the Nifty’s strong performance, surpassing critical resistance levels and indicating a bullish sentiment. With the Nifty’s solid position above 20,400, the overall outlook remains highly positive, with potential upward movement towards 21,000.

It’s essential to note that the views and recommendations expressed in this article are those of individual analysts, experts, and broking companies and not of the publication. Investors are advised to seek advice from certified experts before making any investment decisions.

The positive momentum in the stock market reflects not just the immediate electoral outcomes but also the broader optimism regarding the continuity of government policies and ongoing reforms. Investors are evidently buoyed by the prospects of a stable political landscape leading up to the General Elections in 2024. The impressive surge in the market indices, coupled with midcap and smallcap stocks hitting record highs, indicates a widespread bullish sentiment across various segments.

As over 430 stocks touched their 52-week highs, it underlines the depth and breadth of the market rally, with key players like Axis Bank, Bajaj Finserv, Bharti Airtel, and Larsen & Toubro leading the way. The overall market capitalization gain of ₹5.8 lakh crore in a single session speaks to the substantial wealth creation for investors, reflecting the robustness of the current market trajectory.

Sectoral indices, particularly in banking, financial, and oil & gas, have seen significant upticks, reinforcing the notion that the election results have bolstered confidence in economic policies and reforms. The prevailing positive sentiment not only indicates faith in domestic economic stability but also underscores India’s attractiveness for foreign institutional investors, contributing to the overall market exuberance.

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