Stocks surge to lifetime high on Modi euphoria

Mumbai, May 24 

Equity benchmarks Sensex and Nifty rallied to record closing highs on Friday as investors wagered on more policy reforms following the decisive mandate for the Narendra Modi-led BJP in General Election.

The BSE Sensex shot up 623.33 points, or 1.61 per cent, to end at 39,434.72, while the broader NSE Nifty surged 187.05 points, or 1.60 per cent, to 11,844.10. Both the key indices bettered their previous closing highs hit on May 20 after most exit polls gave the NDA a comfortable majority in the lower House.

During the politically charged week, the 30-share BSE Sensex rose over 1,503 points and the broader Nifty gained 437 points.

The BJP has won over 300 seats on its own out of 542 seats in the Lok Sabha elections — the first back-to-back majority for a single party since 1984.

Analysts believe the emphatic victory for the Modi-led coalition will ensure continuation in reform measures initiated during the NDA’s first term.

“The overwhelming victory will enable the NDA-led government, without political compulsions, to continue with the reforms they started well. Stability in macro-environment will give legroom to the corporate houses to plan medium-to-long term growth and instill confidence further in the foreign investors,” said Vishal Kampani, Managing Director, JM Financial Group.

Investor wealth zoomed Rs 2.53 lakh crore on Friday.

Among the Sensex constituents, 26 stocks rose and 4 counters fell in Friday’s trade. ICICI Bank topped the Sensex gainers’ chart, spurting 5.09 per cent, followed by L&T, Bharti Airtel, Vedanta and Tata Motors, rising up to 4.60 per cent.

Bucking the overall trend, NTPC, HCL Tech, TCS and HUL ended in the red.

The Sensex started on a positive note at 39,076.28 in the morning. It shuttled between a high of 39,476.97 and low of 38,824.26 during the session. It finally settled the day at 39,434.72, higher by 623.33 points, or 1.61 per cent.

The NSE Nifty opened at 11,748.00 and hit a high of 11,859.00 and a low of 11,658.10 during the day. It closed at 11,844.10, showing a rise of 187.05 points, or 1.60 per cent. All 19 BSE sectoral indices traded in the green, led by realty, capital goods, industrials, telecom and auto — gaining as much as 4.25 per cent.

In the broader market, small-cap and mid-cap indices outperformed the benchmark Sensex. The BSE Smallcap index soared 2.43 per cent, midcap climbed 2.09 per cent and largecap advanced 1.61 per cent. Overall, 1,827 stocks advanced and 695 declined on the BSE. A strengthening rupee also bolstered trading sentiment, brokers said.

Meanwhile, foreign institutional investors bought shares worth a net Rs 1,352.20 crore Thursday, as per provisional data. Asian stocks ended mixed on Friday as investors globally remained cautious over the ongoing trade tussle between the US and China. — PTI