As the results of the most waited 2019 Lok sabha Election continues, trends shows BJP returning to power, during the counting of votes for the election the record of the Indian stock market can be seen increased.
The 30-share Sensex scaled a new high of 39,901 and was eyeing the psychologically important 40,000 mark, while 50-pack Nifty topped 11,883 and looked headed for Mount 12,000.
According to Market analysts, Modi Government has created positive sentiments in investors, due to the hope for the return of Modi Government investors are looking forward to boost economic reforms.
— Business Today (@BT_India) May 23, 2019
Siddharth Sedani, Vice-President for Equity Advisory at Anand Rathi Shares and Stock Brokers, said Thursday’s session will be volatile for the market as election leads start coming in.
“In the medium to long term, we see a stronger market on the back of earnings revival from the second quarter onwards amid hopes of recovery in consumption as well as rural demand,” he further added.
Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory, said: “Strong volatility cannot be ruled out in the market due to the election results and weekly index options are set to expire later in the day.”
“The best poll result is not expected to take Nifty beyond the 12,000 mark. On the other hand, highest Put open interest is at 11,500. This level may extend mild support if the index sees volatile moves,” Vaishnav further added.
Sensex crossed the level of 39850 after the record high of 800 points in the initial 15 minutes of trading. On May 21, the Sensex was at all-time high level of 39571 due to exit poll results.
Earlier, in 2014 when the Narendra Modi BJP was voted to power, BSE benchmark Sensex for the first time scaled the mark 25,000 on the results day on May 16. The index closed 0.90 per cent higher at 24,121.