Indian stock markets hit record highs on Monday, with the BSE Sensex surging over 1,100 points to 68,587.82 and the NSE Nifty climbing more than 300 points to 20,602.50. This rally was driven by gains across all sectors, including mid- and small-cap shares.
In three states, Madhya Pradesh, Rajasthan, and Chhattisgarh, the Bharatiya Janata Party has swept to victory, inspiring investors with renewed hope and possibly a market rally, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
All 15 sector gauges compiled by the NSE were trading positively, with Nifty Bank, Nifty Financial Services, and Nifty Oil & Gas outperforming the NSE platform. Adani Enterprises was the top gainer in the Nifty pack, jumping 6.45%, while Adani Ports, ICICI Bank, SBI, and NTPC gained up to 5.04%. On the other hand, Britannia Industries, Maruti, and Dr Reddy's were among the top laggards. The overall market breadth was positive, with 2,409 shares advancing and 616 declining on the BSE.
On the 30-share BSE index, heavyweights such as HDFC Bank, ICICI Bank, L&T, Reliance Industries, and Infosys were among the top gainers. NLC India, Barbeque-Nation Hospitality, Adani Green Energy, and Adani Power surged up to 11.36%. At the same time, Zee Entertainment Enterprises, Kirloskar Ferrous Indus, KNR Constructions, Delta Corp, and Chemplast Sanmar slipped up to 4.06%.
In global markets, Asian markets opened higher, and Wall Street equities advanced on Friday. The state election results in India and positive global cues contributed to the bullish sentiment in the Indian stock market. However, some analysts cautioned that high valuations could trigger selling soon despite the current market rally.