Indian stock markets extended gains on Tuesday with Sensex and Nifty ending at their closing record highs after Narendra Modi led BJP sweeps in Gujarat and Himachal Pradesh in assembly elections. S&P BSE Sensex jumped 235.06 points or 0.7% to conclude at 33,836.74 whereas NSE Nifty settled 74.45 points or 0.72% higher at 10,463.2 with shares of India’s biggest carmaker Maruti Suzuki hitting a lifetime high on Tuesday. In the intraday trade, Sensex rose as much as 260.39 points to hit the day’s high of 33,862.07, just shying off by 3 points from its all-time high of 33,865.95 and Nifty added 67.7 points to mark the day’s high of 10,456.45, just 34 points away from its lifetime high of 10,490.45. Until the afternoon trade, up to 2 pm, domestic markets traded with marginal upside but after that, the key indices quickly edged up to their respective lifetime highs.
Shares of automobile companies Maruti Suzuki, HeroMoto Corp, Tata Motors, Bajaj Auto, M&M surged heavily and were among the top six gainers on Sensex today. The stock of Maruti Suzuki advanced as much as 5.87% to hit a record high of Rs 9,855 before closing up 5.33% at Rs 9,804.5 on BSE. Other notable gainers were Hero MotoCorp (up 4.7%), Tata Motors (up 3.39%), Bajaj Auto (up 2.87%), Bharti Airtel (up 2.5%), Mahindra & Mahindra (up 2.08%), NTPC (up 1.69%), ONGC (up 1.34%), ICICI Bank (up 1.28%), Hindustan Unilever (up 1.22%), and Power Grid (up 1.17%). On the other hand, Shares Wipro, Infosys, IndusInd Bank, HDFC, Kotak Mahindra Bank lost up to 1.07%.
In a major development on Monday, Narendra Modi led Bharatiya Janata Party won the assembly election in the states of Gujarat and Himachal Pradesh. The Congress was not able to defeat the incumbent BJP in Gujarat but it has certainly managed to bring down the ruling party seats to double digits in Prime Minister Narendra Modi’s home state. Earlier yesterday, Sensex and Nifty ended little higher as Narendra Modi led BJP managed to get only a narrow majority in Gujarat elections as against strong margin predicted by exit polls earlier last week.
The Bharatiya Janata Party continued its winning streak to book a sixth term but this time the saffron bearer has lost a phenomenal seat share. In the 2012 assembly election of Gujarat, Bharatiya Janata Party captured 127 seats out of 182, implying a seat share of 69.78%. According to latest count available, this time BJP has only managed to gather about 99 seats out of 182, implying a seat share of 54.39%. The drop in seat share of BJP clearly shows that while Rahul Gandhi led Congress may not have won the elections but INC (Indian National Congress) has trimmed BJP’s stronghold in Narendra Modi’s home state of Gujarat. After losing Gujarat and Himachal Pradesh, now Congress rule has limited to 4 states only, namely, Punjab, Karnataka, Mizoram, and Meghalaya.