Sensex and Nifty edged higher on Tuesday after Narendra Modi led Bharatiya Janata Party won the assembly election in the states of Gujarat and Himachal Pradesh. BSE Sensex gained 130.4 points to open at 33,732.08 whereas NSE Nifty jumped 26.05 points to begin at 10,414.8. Shares of Tata Motors, Hero MotoCorp, Coal India, ONGC were the top gainers in the early trade. 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. The benchmark Sensex rose as much as 145.05 points to hit the day’s high at 33,746.73 and the broader Nifty advanced 42.75 points to mark the day’s high at 10,431.5. 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. The Congress President Rahul Gandhi conceded defeat in the elections and accepted the verdict. He tweeted “The Congress party accepts the verdict of the people and congratulates the new governments in both states. I thank the people of Gujarat and Himachal with all my heart for the love they showed me. My Congress brothers and sisters, you have made me very proud. You are different than those you fought because you fought anger with dignity. You have demonstrated to everyone that the Congress’s greatest strength is its decency and courage.” After losing Gujarat and Himachal Pradesh, now Congress has left with only 4 states in power, namely, Punjab, Karnataka, Mizoram, and Meghalaya.
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.
Shares of Tata Motors, Hero MotoCorp, Coal India, ONGC, Maruti Suzuki, Dr Reddy’s gained up to 1.6% while Bharti Airtel, IndusInd Bank, Infosys, HDFC, Kotak Mahindra Bank lost up to 0.7%. The stock of Airtel shed 0.97% to the day’s low of Rs 521 after India’s largest telecom operator Bharti Airtel signed an agreement with Millicom International Cellular S.A. to acquire 100% stake in its Rwanda operation which operates under the brand name of Tigo Rwanda.
Wall Street hit record closing highs on Monday as optimism increased about the likelihood of lower corporate tax rates as the Republican tax bill moved closer to the passage, Reuters said in a report. The Nasdaq surpassed the 7,000-point mark during the session but closed below that level. The Dow Jones Industrial Average rose 140.46 points, or 0.57% to 24,792.2, the S&P 500 gained 14.36 points, or 0.54% to 2,690.17 and the Nasdaq Composite added 58.18 points, or 0.84% to 6,994.76.