Indian shares hit fresh all-time highs on Monday, driven by financials and energy stocks as state election results boosted market momentum emerging from strong macroeconomic data and easing global interest rate expectations.
The NSE Nifty 50 index rose as much as 1.65% to 20,602.50 points, notching a record high for second session in a row. The S&P BSE Sensex was up 1.64% to an all-time high of 68,587.82, as of 9:51 a.m. IST.
Financial services rose up 1.8% and energy stocks climbed 2%, leading sectoral gains.
Index heavyweights Reliance Industries, ICICI Bank, HDFC Bank gained between 1% and 3%.
Small- and mid-caps gained about 1% each, also hitting new all-time highs.
Ruling Bharatiya Janata Party (BJP) secured key victories in three of the four state assembly elections, results showed over the weekend.
“The state election outcome will lead to greater confidence on continuity of BJP government at the centre which will drive markets higher,” Anjali Verma and Ravi Kumar, research analysts at PhillipCapital said in a note.
The Nifty had hit a record high on Friday, aided by strong domestic macroeconomic data including quarterly growth and monthly factory activity.
“The market has already started the pre-election rally for May 2024 from November, now this rally will get pace after the outcome of state elections,” said Sunil Nyati, managing director of Swatika Investmart.
The Nifty and Sensex posted their best month in 2023 in November, aided by return of foreign inflows on improved global rate outlook.
Adani group stocks gained between 3% and 9% and topped gains in several sectoral indexes including metals and energy.
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