BJP election win cheers Indian stock market; Sensex, Nifty 50 rally to record highs

Sensex and Nifty opened Monday, 4 December, at fresh all-time highs with analysts saying the sweeping victory of the ruling Bharatiya Janata Party (BJP) in Assembly elections 2023 in three states - Rajasthan, Chhattisgarh and Madhya Pradesh, has given fillip to the ongoing rally. At open, the Nifty 50 rose 1.65 per cent to 20,602.50 points, notching a record high for second session in a row. The Sensex was up 1.64 per cent at an all-time high of 68,587.82. At 9:53 am IST, Sensex was up 948.31 points or 1.41 per cent to trade at 68,429.50. Nifty 50 was at 20,556.25 points up 288.35 points or 1.42 per cent. “Positive outcome for the ruling government in current state elections brings a big cheer for the Equity markets. This also acts as a precursor to 2024 general assembly elections and increases hope for continuation of regime, thereby political stability and further economic reforms,” a report by Economic Times quoted Kaushik Dani, Fund Manager, ABANS Investment Managers, as saying. “The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. Market likes political stability and a reform-oriented, market-friendly government,” MoneyControl quoted VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, as saying. The global backdrop was also favourable, with the US 10-year bond yield declining to 4.23 percent. Also, strong domestic macroeconomic data and elevated bets of a US rate cut in March have kept the investor sentiments high. There has been growing expectations that the US Federal Reserve will hold interest rates steady at this month’s meeting and could start cutting rates next year. With inputs from agencies