The political implications of the BJP?s comfortable win in Gujarat coupled with favourable global cues cheered Indian markets in a pre-Christmas session on Monday.
Witnessing an intra-day gain of 716.43 points, the 30-share Sensex of the BSE finally closed at 19,854.12 points, a gain of 691.55 points or 3.61%. The broader 50-share S&P CNX Nifty of the NSE surged 218.6 points, or 3.79%, to close at 5,976 points. The Nifty?s Monday rise is the fifth-largest, single-day gain in its history.
Experts believe that with the Narendra Modi-led BJP sweeping the Assembly elections in Gujarat, the chances of a possible mid-term general election have receded. Expectations of a somewhat stable political scenario at the Centre boosted investors? sentiments.
The market is expected to open strong again on Wednesday after remaining closed for trading on Tuesday on account of Christmas, dealers said.
Monday?s rally was uniformly distributed across sectors, with all sectoral indices ending on a positive note. Even small & midcap companies participated in the rally. The BSE Small Cap index gained 167.25 points, or 1.42%, to close at 11,813.32 points, while the BSE Mid Cap index gained 186.17 points, or 2.06%, to close at 9,211.71 points.
This resulted in highly positive market breadth, with 1,966 stocks advancing against 941 companies that declined. The stock prices of 30 companies remained unchanged. Stocks of 102 companies touched all-time highs and that of only one company touched an all-time low on Monday.
Anita Gandhi, head of institutional sales, Arihant Capital Markets said, ?Taking a cue from global markets, buying was really good in IT and tech companies. We had a very good contribution from FIIs also. The Modi factor was also involved in the surge of stock prices of many Gujarat-based companies.?
