Home Markets Sensex rallies 318 points on election outcome

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Stock markets cheered the outcome of the Assembly polls with the Sensex trading at 21,314.44, up 317.61 points or 1.51 per cent and the Nifty trading at 6,358.75, up 98.85 points or 1.58 per cent.

While the market seems to be driven by the euphoria generated by the outcome of the Assembly polls, the movement of Sensex shares indicates a shift in investor preference towards sectors like banking, capital goods, power and oil & gas, with only consumer durables taking a back seat.

Top gainer on the BSE was ICICI Bank that gained 4.83 per cent to trade at Rs 1,198 followed by SSLT up 4.77 per cent at Rs 191.10. L&T surged 3.89 per cent at Rs 1,139.25, NTPC rose 3.36 per cent at Rs 154 and ONGC climbed 3.12 per cent at Rs 303.80.

Top loser was Jindal Steel that plunged 5.5 per cent at Rs 267.95. Cipla shed 0.81 per cent at Rs 385.25, Tata Steel was down 0.22 per cent at Rs 421.65, Tata Motors fell 0.13 per cent at Rs 390.50 and HUL was down 0.11 per cent at Rs 560.25.

All BSE sectoral indices were trading in the green. Among them, banking, capital goods, realty and power indices led the Sensex rally and were up 3.1 per cent, 2.61 per cent, 1.75 per cent and 1.52 per cent.

Apparently investors may be having a re-look at the sectors they had shunned in their search for safe havens in the past and are now looking at growth sectors, which explains the share price movement post-Assembly elections.

The rupee was trading at Rs 61.18 against the US dollar which explains why suddenly IT stocks are not such a huge favourite in a raging market.

A report from India Forex Advisors said: “On the global front, uncertainty regarding QE tapering continues to prevail in the market as data continues to give an upside surprise and FOMC members are seen giving mixed opinions. On Saturday, a top Federal Reserve official Charles Evans, who has been one of the most ardent supporters of the US central bank’s bond-buying stimulus programme, said he was open to curtailing the purchases this month, although he would prefer to wait. Whereas, Plosser, a long-time critic of the Fed’s stimulus programme said, ‘the sooner we can end this thing, the better.’’ Going ahead FOMC meeting in the next week will add to volatility.”