Today Indian Stock Market: The Indian stock market opened significantly higher on Monday, buoyed by boosted investor sentiment following the Maharashtra and Jharkhand Assembly election results.
While the Sensex jumped 1,289.89 points to 80,407 in early trade, the Nifty surged 405.25 points to 24,312.50.
Both the benchmarks had risen by about 1.5% on Friday as well.
“A significant feature of the Friday rally was the sharp spurts in many large-caps, which clearly indicates short-covering,” VK Vijayakumar, chief investment strategist at Geojit Financial Services, told news agency Reuters. He added: “This sharp upswing will continue today, assisted by the huge victory of the ruling National Democratic Alliance (NDA) in Maharashtra, which is highly positive for the market.”
Two more analysts were of the view that the NDA’s victory in Mumbai will end the chronic instability in one of the most industrialised and economically important states in the country.
All 13 major sectors logged gains. The broader, more domestically focused small- and mid-caps rose about 2% each.
Reliance Industries, the second heaviest-weighed stock in the Nifty 50, gained 2.5% after Citi upgraded it to “buy” from “neutral” citing a favourable risk-reward situation after a period of significant underperformance.
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Most Adani group stocks, too, rose at the open. The conglomerate lost about $28 billion in the previous two sessions as investors cut their exposure to the Indian conglomerate in the wake of bribery and fraud allegations from US authorities.
Online food delivery platform Zomato climbed 6% after it was selected to replace steel maker JSW Steel in BSE Sensex as part of periodic reconstitution of indexes from December 23.
With inputs from PTI and Reuters