The Indian stock market rallied on Monday, driven by multiple factors such as the BJP-led Mahayuti alliance’s victory in the Maharashtra elections, Adani shares rebounding, foreign investors selling less, and the MSCI index rejig which took place today.
Also Read: If you invested ₹10,000 in Bitcoin in 2010, it would now have become…
As of 1:15 pm IST, the benchmark BSE Sensex was up by 790.34 points or 1.00% reaching 79,907.45, while the broader NSE Nifty was up by 279.30 points or 1.17%, reaching 24,186.55.
The top performers of the Sensex were Larsen & Toubro which rose 3.77% to reach ₹3,750, SBI which rose 3.68% to reach 846.05, and Adani Ports which rose 3.12% to reach ₹1,172.95.
Meanwhile, the Nifty sectoral indices which rose the most included the PSU Bank index which rose 4.04%, Oil & Gas which rose 3.04%, and Realty which rose 2.66%.
Also Read: India on the sidelines as the future of finance dawns
Why did the stock markets rally?
The rise is attributed to the BJP-led NDA securing 233 out of 288 seats in Maharashtra which ended years of political uncertainty, though the opposition won in Jharkhand, according to the report.
Another reason was the rebound in Adani stocks with gains up to 7% after having lost more than $28 billion in market value during the previous two sessions. This came after the US Securities and Exchange Commission (SEC) pressed bribery charges against Adani Group Chairman Gautam Adani, which the group denied being part of.
The report also quoted Kranthi Bathini, Director of Equity Strategy at WealthMills Securities as saying that foreign institutional investors (FIIs) selling lesser and strong liquidity also aided the rally. “If FIIs turn net buyers, we could see a strong rally,” he added.
Yet another reason was positive sentiment on the inclusion of BSE, Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty in the MSCI Global Standard Index which happened today.
Also Read: ‘High risk’ for Apple iPhone, iPad, Mac users, government warns