Markets celebrate the grand victory of the BJP in UP & Uttarakhand Assembly elections with the Nifty crossing the 9,000 mark to touch a high of 9,122.75 & the Sensex rallying 616 points to 29,561.93. Domestic sentiment saw positives outcomes as investors saw PM Narendra Modi's landslide victory in UP, India's most populous state pushing for further economic reforms.
The triumphing victory has shown the undefeatable combination of both the Prime Minister Narendra Modi & BJP's president Amit Shah. The Saffron party's victory in both the northern states UP & Uttarakhand will increase their strength in the upper house and will also help them giving a much stronger voice in the next presidential candidate election when President Pranab Mukherjee retires this year in July.
In the morning session at 9.50 a.m., the BSE Sensex zoomed 460.29 points or 1.59 percent to 29,406.52 & the NSE Nifty 50 rallied 134.30 points or 1.50 percent to 9,068.85. All the BSE sectoral indices were bullish, except , metal. Among the Indices the capital goods index was the star-performer & was up 2.32 percent, banking sector rose 2.01 percent, realty 1.92 percent & FMCG 1.55 percent, metal index took a dive at 0.46 percent.
Major Sensex gainers were ICICI Bank (+5.06%), L&T (+3.4%), HDFC (+3.3%), Maruti (+2.19%) and ITC (+2.17%), while the only three losers were Bajaj Auto (-0.18%), Bharti Airtel (-0.15%) and GAIL (-0.12%).
Push to Economic reforms Agenda
Both the Foreign & Domestic Investors, who are positive about the outcomes of the elections results, will take the people's mandate as a push to economic reforms agenda. It will be a signal that the Saffron party BJP will be a strong contender of the upcoming 2019 Lok Sabha elections will also be taken as a positive by foreign Investors, as they basically rely on continuations & stability in economic policy-making. The economy has recently shown that the demonetization drive the center took in the last November had a negligible impact on the overall economy especially the formal sector.
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