Sensex, Nifty hit record highs as BJP triumphs in three states

Sensex and Nifty soared to unprecedented levels on Monday, signalling optimism for political stability in the upcoming Lok Sabha elections.

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Following the resounding victory of the Bharatiya Janata Party (BJP) in the Hindi heartland states of Madhya Pradesh, Chhattisgarh, and Rajasthan, domestic benchmark equity indices, Sensex and Nifty, soared to unprecedented levels on Monday, signalling optimism for political stability in the upcoming Lok Sabha elections.

In the wake of the Assembly results announced on Sunday, where the BJP secured Madhya Pradesh while displacing Congress in Rajasthan and Chhattisgarh, the BSE’s Sensex witnessed a remarkable surge of 954.15 points, a 1.14% increase, opening at an all-time high of 68435.34. The previous record was set at 67,927.23 during intraday trade on September 15, 2023.

Simultaneously, the Nifty experienced a notable rise of 1.65%, gaining 334.05 points to open at a record high of 20601.95 on Monday.

The election outcomes have been perceived as a significant event, instigating renewed optimism and potentially fuelling a market rally. The market favours political stability and a government inclined towards market-friendly reforms, contributing to the positive sentiment.

From a market perspective, the results surpassed expectations, with the market already factoring in a BJP victory, evident in the 500-point rally over the last four sessions. As India braces for the Lok Sabha elections, the record highs attained by Sensex and Nifty reflect the market's response to the perceived political stability resulting from the BJP's success in key states.