Mumbai, India (BBN) – Indian markets cheered the landslide victory of the BJP in Uttar Pradesh and Uttarakhand Assembly elections with the Nifty hitting a new high of 9,122.75 and the Sensex rallying 616 points to 29,561.93.
Domestic sentiment was buoyed as investors saw Prime Minister Narendra Modi’s landslide victory in the northern state of Uttar Pradesh as endorsing his economic reform agenda, reports The Hindu Business Line.
This stunning victory has once again reiterated the role of the unbeatable combination of Prime Minister Narendra Modi and party president Amit Shah.
BJP’s decisive victory in Uttar Pradesh and Uttarkhand Assembly polls will empower the saffron party in the selection of the next presidential candidate when Pranab Mukherjee retires in July.
At 9.50am, the 30-share BSE index Sensex surged 460.29 points or 1.59 per cent to 29,406.52 and the 50-share NSE index Nifty jumped 134.3 points or 1.5 per cent to 9,068.85.
Except metal, all other BSE sectoral indices were trading in the green with gains up to 2 per cent. Among them, banking index gained the most by 1.95 per cent, followed by capital goods 1.94 per cent, realty 1.55 per cent and FMCG 1.54 per cent, while metal index was down 0.17 per cent.
Foreign and domestic investors, who have been supporting the market rally, will interpret the win as an indication that economic policy reforms will get an impetus.
The likelihood that the BJP is a strong contender in the 2019 Lok Sabha elections will also be taken positively by foreign investors, who prefer continuation and stability in policy-making.
Equity markets have also been enthused by macro data and company earnings in recent months that showed that demonetisation had a negligible impact on the formal sector.
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