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BJP's electoral victory sweep powers Nifty to another high, Sensex gains 1,000 points to climb new peak

By 9:30 am, the Sensex marked a notable climb of over 1,000 points to reach 68,525, while the Nifty rose by more than 300 points to around 20,600. Both indices reached all-time peaks, with every sector displaying positive trends.

BJP electoral victory sweep powers Nifty to another high, Sensex gains 1,000 points to climb new peak AJR
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First Published Dec 4, 2023, 11:04 AM IST

The Nifty 50 and Sensex surged to unprecedented highs on Monday (December 4) as investors rallied behind the BJP's dominant performance in three Hindi Heartland states. This victory hinted at political stability and a decline in fears of populist policies, garnering favor from market analysts.

By 9:30 am, the Sensex marked a notable climb of over 1,000 points to reach 68,525, while the Nifty rose by more than 300 points to around 20,600. Both indices reached all-time peaks, with every sector displaying positive trends.

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Here are the factors contributed to the substantial market upswing:

BJP's electoral triumph
The BJP's sweeping victories in Rajasthan, Madhya Pradesh, and Chhattisgarh reduced apprehensions of fiscal populism and political uncertainties. This outcome significantly influenced market momentum.

Analyst predictions
Market experts anticipate further robust gains in the domestic market post-election results. Optimism runs high, with expectations of the Nifty breaching the 20,800 mark in the near future.

Global market trends
Favorable global market conditions, reflected in strong gains in the US indices and a positive trend in Asian markets, buoyed investor sentiment. A decline in oil prices, US 10-year bond yields, and the dollar index further bolstered this outlook.

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Expectations on interest rates
Signs of easing inflation have sparked anticipation that the US Federal Reserve might halt its rate hike during the next meeting in mid-December. Speculation even extends to the possibility of the Fed initiating rate cuts by mid-2024. This expectation, mirrored by the Reserve Bank of India, contributed to the positive market sentiment.

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