Stock market today: Extending the Friday pullback rally on Monday, the Indian stock market witnessed decent buying during early morning deals. The frontline indices surged up to 2 per cent in the Opening Bell. The Nifty 50 index opened with an upside gap at 24,253 and touched an intraday high of 24,330 within a few minutes of the Opening Bell, recording an intraday rally of 423 points against Friday's close of 23,907.
The BSE Sensex today opened upside at 80,193 and touched an intraday high of 80,452 in early morning deals, logging an intraday rise of 1,355 points. Likewise, the Nifty Bank index opened higher at 52,046 and touched an intraday high of 52,232 during the Opening Bell, logging an intraday rally of around 1,100 points.
According to stock market experts, this rally can be attributed to two basic reasons: the BJP-led NDA's landslide victory in the Maharashtra Election Results and the Russia-Ukraine war fueling Reliance's share price today. In the early morning session, Reliance's share price rose around 2.50 per cent, which owns one-sixth of the Sensex strength.
Highlighting the reason for the rise in the Indian stock market after the landslide victory of the BJP-led NDA in the Maharashtra Assembly Election, Palka Arora Chopra, Director of Master Capital Services, said, "In Maharashtra, the BJP-led Mahayuti alliance is set to form the government. This Maharashtra Election Result is expected to provide political stability, positively impacting investor sentiment, especially in infrastructure, urban development, and manufacturing sectors aligned with BJP policies."
“The stability in Maharashtra could trigger a rally in the stock market, boosting investor confidence due to the continuity of pro-business policies, especially after uncertainty following previous coalition shifts. Furthermore, with a clear mandate, the government will likely push forward with infrastructure projects, a key focus of the BJP, which would benefit the construction, real estate, and related sectors,” Palka Arora added.
Pointing towards the Sensex heavyweight Reliance share price rally, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Due to escalation in the Russia-Ukraine war, crude oil prices are skyrocketing, and the trend is expected to continue until there is some ease in the geopolitical tension. So, Reliance and other oil maker companies are expected to reap margin benefits on their buffer stocks, which is expected to cement their upcoming quarter numbers. So, the market is expected to offer a discount on this short-term benefit that will trickle into Reliance's share price. Apart from this, the company's retail and telecom business is expected to sustain its uptrend. So, Friday's rally in Reliance share price should be seen from this angle. Those with surplus money may think of looking at Reliance shares as the stock looks promising for all sets of time horizons.”
On how Maharashtra Election results are connected to the Indian stock market, Mahesh M Ojha of Hensex Securities said, “After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks. However, after the Maharashtra Assembly Election Results, they may start looking at railway, infra, and banking stocks, changing their investment strategy from defensive to aggressive.”
Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The Maharashtra Election Results have established that momentum is still with the incumbent government (both at New Delhi and Maharashtra). So, investors are expected to look at the rail and infra segment as the Government of India (GoI) and Maharashtra State Government have showcased a special focus on these segments. As infra sector companies would go for credit lines from the banks, banking stocks may also see some buying interest when the market opens on Monday.”
Asked about shares to buy on Monday after the Maharashtra Election Result, Mahesh M Ojha of Hensex Securities said, "In the railway segment, one can look at RVNL, IRFC, Railtel, and IRCON International. In the infrastructure segment, Larsen & Turbo (LT) can be a good bet for the medium to long term. Likewise, medium- to long-term investors may look at SBI, Canara Bank, and Jammu & Kashmir Bank shares in the banking space. One can look at ICICI Bank and HDFC Bank shares if they look at the private bank share."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
