The Sensex and Nifty posted their biggest intra-day gains in 10 years on Monday, after exit polls indicated an easy win for current PM Narendra Modi. The Sensex ended 1,421.90 points higher at 39,352.67, while the Nifty closed 421.10 points higher at 11,828.25, both at their respective closing highs. Notably, the Sensex is just 135 points away from hitting its highest ever mark, while the Nifty is about 28 points away from its highest ever mark of 11,856.15. Notably, Nifty Bank index saw its best ever day in history, surging more than 1,310 points to 30,759.70. Intra-day, Nifty Bank index hit a fresh record high of 30,827.85. Among the components of the index which touched a fresh 52-week high were SBI (8.32%), ICICI Bank, Axis Bank (4.48%), RBL (3.7%), Kotak Mahindra Bank ( 2.92%) and HDFC Bank (2.79%). Among the top Sensex gainers were IndusInd Bank (8.64%), SBI (8.04%), Tata Motors (7.53%), Yes Bank (6.73%).
Also read: Missed out on today’s Sensex, Nifty rally; should you wait or put in money now in share market?
All the major indices including Nifty Bank, Nifty Auto, Nifty Financial Services, Nifty FMCG, Nifty IT, Nifty PSU Bank index ended with robust gains of up to 8%. The Nifty midcap index gained more than 687 points, its highest ever single day gain in history. Bluechip heavyweights including HDFC twins, Reliance Industries, ICICI Bank, L&T together contributed to more than 50% of the Sensex gains.
According to Naveen Kulkarni, Head of Research, Reliance Securities we could see a sector specific rally going forward. “The market is likely to rally further but the rally may not be significant as there are challenges of not so encouraging earnings growth, lower liquidity, slowing economy and global challenges. There could be sector specific rally like infrastructure and banking that could do well,” he said. While the Sensex and Nifty are just a few points away from their record highs, expert say that fresh peaks may be scaled in the upcoming sessions.
The present euphoric reaction might continue and we might also see markets testing it’s previous high and even bit higher, but once this euphoric reaction is done with, we will see macro-economical and macro-technical factors taking dominance once again, technical analyst Milan Vaishnav told Financial Express Online. He advises investors not chase this rally, and use these up moves to lighten up their portfolio, and rebalance once the general election results are fully digested by the stock markets.