Expectations of policy continuity by the BJP-led government at the Centre after the strong mandate at state polls changed investor sentiment on Dalal Street on Monday. Aggressive buying led by domestic investors pushed the sensex up by nearly 1,400 points or over 2% to 68,865 points, a new all-time peak.
Nifty on NSE, too, closed at a fresh life-high mark, at 20,687 points.
As domestic investors net bought stocks worth about £480 million and foreign funds nearly £210 million, investors’ wealth, measured by BSE’s market cap went up by £75 billion to £3,500 billion, also a new high.
The strong market rally also added almost £7.3 billion to Adani group’s market value to £120 billion now, as group company shares rose as much as 9.4%.
India’s equity markets have given a clear thumbs up to the state election outcome with a 1,000-point-plus rally in the sensex, said A Balasubramanian, MD & CEO, Aditya Birla Sun Life Mutual Fund. The government’s initiatives such as building strong infrastructure, ‘digital India’ and ‘Make in India’ are some of the pro-growth initiatives which have been well received by the market, he said. “The equity market looks at how money is being spent effectively and the sustainability by way of policy making and the market reaction is a clear endorsement of growth and not driven by freebies,” Balasubramanian said.