Sensex and Nifty extend gains on anticipated stable NDA government
On Thursday, India's leading stock market indices, Sensex and Nifty, continued their upward trajectory following the recent election results. The anticipated formation of a stable NDA government has been driving this trend. Despite initial concerns over a weaker-than-expected mandate for Prime Minister Narendra Modi's BJP, traders and investors are now factoring in a stable coalition. Aishvarya Dadheech, founder & CIO of Fident Asset Management, stated that "the recovery seen in the previous session has more legs."
Financial services and IT stocks drive Nifty's gains
At 10:15 am, the Sensex was up by 514 points or 0.7% at 74,896 and the Nifty 50 was up by 168 points at 22,790. Financial services and IT stocks were the primary drivers of Nifty's gains on this day. However, healthcare and FMCG stocks declined after significant buying in the previous session. Dadheech further added that "the pessimism with which the market reacted on June 4 will possibly settle for good."
Factors contributing to Nifty's rise and future predictions
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, attributed the Nifty's rise to several factors including the exit poll numbers, better-than-expected GDP numbers, a strong pullback in US markets, the arrival of monsoon and a reduction in fiscal deficit. Sheth also suggested that traders should use this opportunity to book profits in their long positions and wait for dips in Nifty around 23,000 to 22,800 levels to create fresh long positions.
