Monday saw new all-time highs for Indian equities, led by energy and banking companies as state election outcomes increased market vigour following upbeat macroeconomic data and a reduction in expectations for global interest rates.
Sector gains were led by advances in energy equities (up 2%), and financial services (up 1.8%).
Heavyweights on the index, Reliance Industries, ICICI Bank, and HDFC Bank, all saw gains of 1% to 3%.
Both small- and mid-cap stocks saw gains of around 1%, setting new all-time highs.
Results over the weekend indicated that the ruling Bharatiya Janata Party (BJP) in India had achieved significant wins in three of the four state legislature elections.
The results of the state elections will boost confidence in the BJP government’s ability to continue in power at the federal level, which will raise stock prices.
Due in part to robust domestic macroeconomic statistics, such as quarterly growth and monthly manufacturing activity, the Nifty reached a new high on Friday.
“The pre-election rally for May 2024 has already begun in the market, and it will pick up steam following the results of state elections in November.”
November was the strongest month for the Nifty and Sensex in 2023 because to the recovery of foreign funds and a stronger outlook for global interest rates.
Stocks in the Adani Group increased by 3% to 9%, outpacing increases in a number of sectoral indices, such as the oil and metals sectors.