- Not quite there, Bharatiya Janata Party weighs options, Aam Aadmi Party happy to sit in OppnArvind Kejriwal's AAP stops Bharatiya Janata Party march, may force Delhi re-electionBharatiya Janata Party accepts AAP (Aam Aadmi Party) factor, grudginglyBharatiya Janata Party, Aam Aadmi Party at loggerheads: What next?
to discount that before the elections itself.
Considering all aspects an investor should stay invested in the markets with a bullish view point.
Indian shares hit record high as opposition wins state polls
(Reuters) Indian shares rose to a record high on Monday after the main opposition party, widely seen by investors as being more business friendly, swept recent state elections, even as doubts persist about how long the rally can last.
The benchmark BSE index rose more than 2 percent at one point to surpass its previous all-time peak hit on Nov. 3, capping a remarkable turnaround from a few months ago when the country was gripped by its worst market crisis since 1991.
Results on Sunday showed Hindu nationalist Bharatiya Janata Party (BJP) swept three out of four key state elections held since last month, delivering a blow to the ruling Congress Party and bolstering the prospects of opposition prime minister candidate Narendra Modi in national polls due by May next year.
Despite recent policy action by Congress, including moves to attract foreign investments, markets have been clamouring for more measures to bolster an economy growing at its slowest in a decade and to ease infrastructure bottle necks that keep inflation high.
Investors, for now, have concluded that BJP is the most likely to deliver change, analysts said.
"The BJP is considered more right-of-center, pro-business and reform-oriented," Nomura said in a note to clients.
"The fact that runaway spending by the ruling party has not won any votes could be taken as a very positive signal by the markets in terms of voter preference for the kind of policy favoured by the electorate."
The BSE index gained as much as 2.3 percent to a record high of 21,483.74 points, while the NSE index rose as much as 2.5 percent to an all-time high of 6,415.25, surpassing its previous peak hit on January 2008.
Both indexes ended up around 1.6 percent.
Sectors such as infrastructure and construction, seen as most benefitting from a potential BJP victory in elections next year, did especially well.
Builder Larsen & Toubro Ltd, for example, rose 4.1 percent. Lenders, which would benefit from a business cycle