Market boom: Nifty, Sensex hit record highs after BJP`s state election triumph

The domestic equity markets rallied Monday, propelled by the Nifty 50 and Sensex achieving new highs in the wake of BJP`s sweeping victories in three states. This triumph has signalled stability and alleviated concerns of populism. The Bank Nifty index also surged to an all-time high, closing more than 3% above its previous mark. With the exception of the Nifty Media and Pharma indices, all NSE sectors ended the day in positive territory.

Moreover, global markets are also experiencing a positive trend, attributed to the moderation of the US 10-year bond yield and the dollar index, which is fortifying the strength of the markets. Furthermore, the anticipation of the US Federal Reserve suspending its rate hike program in the upcoming meeting and potentially implementing rate cuts by mid-2024 has significantly bolstered market sentiment. Additionally, foreign institutional investors have re-entered the market with substantial net purchases, signifying a restored confidence in the market`s prospects.

The barometer index, the S&P BSE Sensex surged 1,383.93 points or 2.05% to 68,865.12. The Nifty 50 index gained 418.90 points or 2.07% to 20,686.80. Both the indices attained record closing high levels.

The Sensex clocked an all-time high of 68,918.22 while the Nifty hit record high of 20,702.65 in late trade. Further, the Nifty Bank index also registered its fresh record high of 46,484.45.

Adani Enterprises (up 7.07%), ICICI Bank (up 4.68%) and HDFC Bank (up 3.44%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 1.19% while the S&P BSE Small-Cap index advanced 1.20%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index hit an all time high of 35,124.23 and 41,221.91, respectively.

The market breadth was strong. On the BSE, 2,387 shares rose and 1,451 shares fell. A total of 180 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 4.92% to 12.99.

Politics:

In the recent Assembly Elections, the BJP emerged victorious in Madhya Pradesh, Chhattisgarh, and Rajasthan, while the Congress secured a majority in Telangana. In Rajasthan, the BJP has won an absolute majority with 115 seats out of the total 199, with the Congress securing 69 seats. In Madhya Pradesh, the BJP won 163 seats, marking its biggest victory in the state in two decades, while in Chhattisgarh, the BJP reclaimed power with 54 seats, surpassing the ruling Congress which obtained 35 seats.

In Telangana, the Congress secured 64 seats out of 119, surpassing the ruling BRS party, which gained 39 seats. The BJP secured eight seats, and the AIMIM won 7 seats.

Parliament Winter Session:

The Winter Session of Parliament kicked off today, 4 December 2023, and is slated to extend until 22 December encompassing 15 scheduled sittings over 19 days. An ambitious legislative agenda awaits in the form of 19 bills to be addressed during this session. These encompass a wide array of areas such as legal matters, appointment procedures for election commissioners, and crucial financial business. Noteworthy among these bills are the Bharatiya Nyaya Sanhita, the Chief Election Commissioner and other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, and the Provisional Collection of Taxes Bill 2023.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.23% to 7.273 as compared with previous close 7.290.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3625, compared with its close of 83.3350 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement rose 0.57% to Rs 63,471.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.11% to 103.38.

The United States 10-year bond yield advanced 0.67% to 4.252.

In the commodities market, Brent crude for February 2024 settlement declined 46 cents or 0.58% to $78.42 a barrel.

Global Markets:

Most shares in Europe and Asia declined on Monday, with investors awaiting a slew of key economic data Tuesday and inflation readings later this week.

US stocks advanced on Friday with the S&P registering its highest close of the year after remarks from US Federal Reserve Chair Jerome Powell boosted the view that key policy rates have peaked.

US Federal Reserve Chair Jerome Powell on Friday reaffirmed the central bank�s intent to remain cautious on interest rates but also said that the hoped-for �soft landing" of the US economy seemed to be falling into place.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) rallied 6.19% after the company recorded strong cargo volumes of around 36 million metric tons (MMT) in November 2023, implying a YoY growth of 42%.

Eicher Motors spurted 7.54% after the company�s total motorcycles (Royal Enfield) sales grew 13% to 80,251 units in November 2023 as against 70,766 units sold in November 2022.

Hero MotoCorp added 0.99% after the two-wheeler major`s total sales jumped 25.61% to 491,050 units in November 2023 as compared with 390,932 units sold in November 2022.

Maruti Suzuki India rose 0.19% after the car major on Friday announced that its total production grew 3.29% to 1,47,763 units in November 2023 compared with 152,786 units recorded in November 2022.

Kalpataru Projects International gained 4% after the company and its international subsidiaries received new orders of Rs 2,263 crore.

J Kumar Infraprojects gained 2.63% after the company received letter of acceptance (LoA) from Mumbai Metropolitan Region Development Authority (MMRDA) amounting to Rs 378.70 crore.

Tata Power advanced 2.09% after the company has secured the bid to acquire Bikaner-III Neemrana-II Transmission, a project special purpose vehicle (SPV) established by PFC Consulting. The project`s estimated cost is Rs 1,544 crore and will be developed on Build-Own-Operate-Transfer (BOOT) basis.

BCL Industries sizzled 9.82% after the company along with its subsidiary, Svaksha Distillery, received a tender floated by Oil Marketing Companies (OMCs) for supplying ethanol.

L&T Finance Holdings (LTFH) advanced 1.79% after the company announced successful completion of the merger of its subsidiaries, L&T Finance (LTF), L&T Infra Credit (LTICL) and L&T Mutual Fund Trustee with itself.

Sadhana Nitrochem surged 6.8% after the company announced that it will set up a green hydrogen facility, based on a solar plant and wind farm with a capacity of 15MW-20MW.

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