Indian benchmark indices kicked off the week on a strong note, thanks to BJP-led Mahayuti alliance’s landslide victory in the Maharashtra Assembly election over the weekend. Dalal Street cheered the exit-polls outcomes on Friday but the roar was louder on Monday after the election outcome with headline indices scaling key psychological levels.
At the opening tick, BSE’s barometer Sensex zoomed about 1,290 points, or 1.63 per cent to 80,407 on Monday. NSE’s Nifty50 index soared more than 400 points, or 1.7 per cent to 24,312.50 in the early session. In the broader markets, BSE midcap and smallcap indices rose up to 2 per cent in the early session.
Nifty50 has witnessed a strong reversal up move from its support zone as expected and now we expect the momentum to extend near to 24,500 levels over the next few days, said Vikas Jain, Head of Research at Reliance Securities. The revised support would move higher to 23,800 which is the hourly moving average followed by the long-term support of the 200-day average, he said.
Investors went richer by 8.55 lakh crore in the notional terms as the total market capitalization of all the BSE-listed entities rose to 442.37 lakh crore as on Monday. The total market capitalization of the all-BSE listed entities stood at 433.82 crore as of the close on Friday, November 22.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the political message from this election is huge and highly positive from the market perspective. “Banking and IT are on a strong wicket assisted by fair valuations and reasonable growth prospects. Watch out for capital goods, telecom and pharma stocks,” he said.
The trading range is pegged at 23,800-24,800, with resistance at 24,000 and strong support at 23,000-23,500. FIIs, who sold Rs 40,947 crores in November, may begin covering shorts as bullish momentum builds, supported by Nifty’s close above the 200-DMA and record highs in the Dow, said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
Fear gauge, India VIX, traded flat, marginally up at 16.17-levels. On a sectoral front, Nifty PSU Bank emerged as the leader of the pack, with Nifty PSU Bank index gaining more than 3 per cent, while Nifty Oil & Gas and realty indices also added 3 per cent each. Nifty Bank and Financial Services indices soared more than 2 per cent each in the early session.
Among the Nifty50 constituents, Bharat Electronics Ltd (BEL) gained more than 5 per cent, while Shriram Finance Ltd and Bharat Petroleum were up 4.75 per cet each. Larsen & Toubro Ltd (L&T) and ONGC Ltd were up 4 per cent each in the pack. Mahindra & Mahindra Ltd (M&M), Adani Ports, Coal India Ltd were other key gainers.
On the other hand, only three Nifty50 stocks were trading in red. JSW Steel, which shall be replaced by Zomato in the Sensex pack, was down 2 per cent. Infosys Ltd and Dr Reddy’s Laboratories Ltd were other key laggards.
In the broader markets, IFCI Ltd, J Kumar Infraprojects Ltd, RITES Ltd, Sobha Ltd and Jai Corp Ltd were the stocks posting double digit gains. All these counters rose 10-14 per cent in the early day. On the downside, Symphony Ltd was down 3 per cent, while Vijaya Diagnostics Centre and Netweb Technologies shed 2 per cent each.
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