The Indian stock market saw respectable purchasing during early morning trades on Monday, continuing the Friday retreat rebound. At the Opening Bell, the frontline indicators spiked up to 2%. Within minutes of the Opening Bell, the Nifty 50 index recorded an intraday rise of 423 points against Friday’s closing of 23,907, having begun with an upside gap at 24,253 and reaching an intraday high of 24,330.
The BSE Sensex saw an intraday increase of 1,355 points today, starting the day higher at 80,193 and reaching an intraday high of 80,452 in early morning trading. Similarly, at the Opening Bell, the Nifty Bank index saw an intraday surge of around 1,100 points, starting the day higher at 52,046 and reaching an intraday high of 52,232.
The BJP-led NDA’s overwhelming victory in the Maharashtra election results and the Russia-Ukraine war, which is driving Reliance’s share price today, are the two main causes of this rise, according to stock market analysts. Reliance’s share price increased by almost 2.50% in the early morning session, accounting for one-sixth of the Sensex strength.
Maharashtra Election Results
Palka Arora Chopra, Director of Master Capital Services, highlighted the reason behind the surge in the Indian stock market following the BJP-led NDA’s overwhelming victory in the Maharashtra Assembly Election: “The BJP-led Mahayuti alliance is expected to form the government in Maharashtra. The outcome of this Maharashtra election is anticipated to bring political stability and boost investor confidence, particularly in the BJP-aligned manufacturing, urban development, and infrastructure sectors.
“The stability in Maharashtra could trigger a rally in the stock market, boosting investor confidence due to the continuity of pro-business policies, especially after uncertainty following previous coalition shifts. Furthermore, with a clear mandate, the government will likely push forward with infrastructure projects, a key focus of the BJP, which would benefit the construction, real estate, and related sectors,” Palka Arora added.
Pointing towards the Sensex heavyweight Reliance share price rally, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Due to escalation in the Russia-Ukraine war, crude oil prices are skyrocketing, and the trend is expected to continue until there is some ease in the geopolitical tension. So, Reliance and other oil maker companies are expected to reap margin benefits on their buffer stocks, which is expected to cement their upcoming quarter numbers. So, the market is expected to offer a discount on this short-term benefit that will trickle into Reliance’s share price. Apart from this, the company’s retail and telecom business is expected to sustain its uptrend. So, Friday’s rally in Reliance’s share price should be seen from this angle. Those with surplus money may think of looking at Reliance shares as the stock looks promising for all sets of time horizons.”
On how Maharashtra Election results are connected to the Indian stock market, Mahesh M Ojha of Hensex Securities said, “After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks. However, after the Maharashtra Assembly Election Results, they may start looking at railway, infra, and banking stocks, changing their investment strategy from defensive to aggressive.”
Rail, infra, and banking stocks in focus
Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The Maharashtra Election Results have established that momentum is still with the incumbent government (both at New Delhi and Maharashtra). So, investors are expected to look at the rail and infra segment as the Government of India (GoI) and Maharashtra State Government have showcased a special focus on these segments. As infra sector companies would go for credit lines from the banks, banking stocks may also see some buying interest when the market opens on Monday.”
