Indian shares hit new all-time highs on Monday, driven by financials and energy stocks, as state election results boosted market momentum on strong macroeconomic data and declining global interest rate expectations.
The NSE Nifty 50 index rose as much as 1.65% to 20,602.50 points and recorded a record high for the second consecutive session. The S&P BSE Sensex rose 1.64% to a record high of 68,587.82 as of 9.51 am IST.
Financial services rose 1.8% and energy stocks rose 2%, leading the sector gains.
Index heavyweights Reliance Industries, ICICI Bank and HDFC Bank rose between 1% and 3%.
Small and mid-caps gained about 1% each and also reached new record highs.
The ruling Bharatiya Janata Party (BJP) secured significant victories in three of the four state assembly elections, results showed over the weekend.
“The outcome of the state elections will lead to more confidence in the continuity of the BJP government at the Center, which will push markets higher,” Anjali Verma and Ravi Kumar, research analysts at PhillipCapital, said in a note.
The Nifty had touched a record high on Friday, helped by strong domestic macroeconomic data including quarterly growth and monthly factory activity.
“The market has already started the May 2024 election rally from November, now this rally will gain momentum after the outcome of the state elections,” said Sunil Nyati, Managing Director of Swatika Investmart.
The Nifty and Sensex posted their best month of 2023 in November, helped by the return of foreign inflows on the back of an improved global interest rate outlook.
Adani Group shares rose between 3% and 9%, outpacing gains in several sector indices including metals and energy.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
