Mumbai. The local stock markets made a strong comeback on Wednesday and the BSE Sensex jumped more than 2,300 points. The NSE Nifty also gained 735 points. The stock market had fallen sharply on Tuesday as the Lok Sabha election results were not as expected. The 30-share Sensex closed with a gain of 2,303.19 points or 3.20 percent at 74,382.24. During trading, it had climbed up to 2,455.77 points at one point. The market remained bullish due to buying in shares of banks, automobile and petroleum companies.
The National Stock Exchange’s Nifty also jumped 735.85 points or 3.36 percent to close at 22,620.35 points. During trading, at one time it had climbed up to 785.9 points. Heavy buying in HDFC Bank, ICICI Bank and Reliance Industries boosted the market. The BJP-led National Democratic Alliance (NDA) has crossed the majority mark of 272 in the 543-member Lok Sabha. But the BJP has fallen short of the majority mark for the first time since 2014 and will have to depend on its allies to form the government.
The Election Commission has declared the results of all 543 Lok Sabha constituencies. In this, BJP won 240 seats and Congress won 99 seats. Vinod Nair, Head of Research, Geojit Financial Services, said, “With stability being ensured at the political level, the market returned to its bullish trend with buying from all sides. However, all eyes will be on the formation of the government and the monetary policy to be presented this week.” All the 30 shares included in the Sensex were in profit. Indusind Bank was in profit of more than seven percent.
Apart from this, Tata Steel, Mahindra & Mahindra, Bajaj Finance, Kotak Mahindra Bank, Hindustan Unilever, HDFC Bank, Axis Bank and JSW Steel were also major gainers. According to the report of Motilal Oswal Research, “Despite the BJP not getting an absolute majority, we estimate that the policy agenda of Narendra Modi’s second term (investment-led growth, capital expenditure, investment on infrastructure, manufacturing, etc.) will continue. However, it is possible that there may be some changes in it. ”
It said, “Looking at the way the election results have come, we also hope that some populist schemes can be announced to solve the problems of the villages.” In other Asian markets, South Korea’s Kospi was in profit while Japan’s Nikkei, China’s Shanghai Composite Index and Hong Kong’s Hang Seng were in loss. There was a bullish trend in the early trade in major European markets. The US market was in the lead on Tuesday.
Global oil benchmark Brent crude rose 0.14 percent to $ 77.61 per barrel. According to stock market data, foreign institutional investors sold shares worth Rs 12,436.22 crore on Tuesday. The BSE Sensex fell 4,389.73 points on Tuesday. The NSE Nifty plunged 1,982.45 points.
Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.
