Stock Market Update: The Nifty 50 index of the National Stock Exchange is poised for a robust opening on Monday, building on its unprecedented rally following the BJP’s triumph in key state elections. The victories in Rajasthan, Madhya Pradesh, and Chhattisgarh signal a favorable outlook for the Narendra Modi government’s ongoing economic reforms.
Market participants are optimistic about the NDA forming the government after the 2024 general elections, reinforcing the bullish sentiment. GIFT Nifty futures on IFSC surged 137 points, hinting at an uncharted territory opening and a continuation of the record-breaking rally.
Stock market started factoring in edge:
“The Indian stock market has started factoring in an edge to the BJP in state elections, but 3-1 was not discounted; therefore, the market is likely to celebrate with big gains. The market has already started the pre-election rally for May 2024 from mid-November, and now this rally will get pace after the outcome of state elections,” said managing director of Swastika Investmart Ltd, Sunil Nyati.
“Now two factors will play out FOMO and TINA. The feeling of missing out (FOMO) and the fact that there is no alternative (TINA). FIIs are still on the sidelines, and now they have FOMO feelings. After the state election outcome and surprising strong GDP numbers, it is clear that there is no alternative to India in terms of political stability and economic growth. Now these two factors have created a canvas for a pre-election rally,” Nyati mentioned.
Good chance that Nifty may hit mark of 21,000 in December:
“There is a good chance that Nifty may hit the auspicious mark of 21,000 in December itself, while another 1,000-2,000 points rally can’t be ruled out in the run-up to the general election,” Nyati further added.
“The recent GDP data has surprised all estimates with higher than-estimated numbers clearly reflecting the current economy. Manufacturing and mining have shown double-digit growth this time which directly indicates the kind of activity taking place in the economy. The manufacturing is driving growth for a few quarters which is a structural change after a long time. Investors should keep things simple and focus on asset allocation and rebalancing of portfolio,” said National Head of Wealth, AUM Capital, Mukesh Kochar.
BJP’s performance in three states:
According to figures from the Election Commission as of 3:00 pm, the BJP had won the assembly elections in Rajasthan, Madhya Pradesh, and Chhattisgarh. With 165 out of 230 seats won, the BJP became the state’s fifth political party. 115 out of 199 seats were gained by the BJP over the Congress in Rajasthan, and 56 out of 90 seats were won by the BJP over the Congress in Chhattisgarh.