Stock market celebrates Narendra Modi's electoral triumph, nearly 300 stocks hit 52-week high

Written by PTI | Mumbai | Updated: May 16 2014, 23:51pm hrs
Election results 2014A diamond merchant arranges diamond crystals that reads ''Bar Bar Modi Sarkar" in Surat on Friday. PTI
Mirroring strong investor sentiment in the stock market that recorded lifetime highs, nearly 300 stocks hit their one-year peak on the BSE today celebrating the victory of Narendra Modi-led BJP in the Lok Sabha polls.

As much as 278 stocks touched their 52-week high on the BSE with prominent names such as ACC, Adani Ports, Axis Bank, BHEL, Coal India, HDFC, HDFC Bank, ICICI Bank, IOB, ITC, L&T, Maruti Suzuki, NHPC, NMDC, ONGC, PNB, RIL, REC, SAIL, SBI, Tata Motors, Tata Power and Tata Steel.

"This is an unprecedented election result and something that the markets are rightly rejoicing. A strong stable mandate was the need of the hour and it has been delivered even more decisively than the markets had hoped for," said Dinesh Thakkar, Chairman & Managing Director, Angel Broking.

There is well-grounded expectation that the new government will usher in strong pro-reform policies and kick-start the investment cycle, he noted.

The benchmark Sensex surged 1,470 points to hit a new life-time high of 25,375.63 in early trade but retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.

Among the 13 BSE sectoral indices, realty and bankex stole the show, rising as much as 6 per cent.

From the 30-Sensex constituents, 18 ended the day in green with Sesa Sterlite Ltd leading the chart with 11.11 per cent rise.

"The fall from the sharp rally is most likely due to investors locking in profits after the huge surge in the morning, although it could also have to do with the

expectations investors have on how many seats the NDA will actually grab and whether the BJP will, on its own, be able to grab the required 272 seats on its own," said Raghu Kumar, Cofounder, RKSV.

Trends show that BJP alone would end up with nearly 280 seats, first time in about 30 years that a single party will win the majority in Indian Lok Sabha elections.