Sensex, Nifty Gain 2% For First Time In A Year On Poll Outcome: Market Wrap

India's benchmark indices ended at a fresh high, gaining 2% for the first time in a year, as investors cheered the Bharatiya Janata Party's win in three Hindi heartland states.

The NSE Nifty 50 ended 418.90 points, or 2.07%, higher at 20,686.80, while the S&P BSE Sensex gained 1383.93 points, or 2.05%, to close at 68,865.12. Last time, the BSE Sensex and the NSE Nifty 50 closed over 2% higher on Nov. 11, 2022 and Dec. 26, 2022, respectively.

The BJP secured victory in the Madhya Pradesh, Rajasthan and Chhattisgarh state assembly elections, which reaffirmed its position as the dominant party.

"The market has made a solid comeback from lower levels, that too in an environment of uncertainties, which will help Nifty move towards 21,500 in the medium to long term. We cannot expect these levels at once, but it should be the target and a strategy to buy on dips for positional traders and investors," said Shrikant Chouhan, head equity research, Kotak Securities Ltd.

HDFC Bank Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Larsen & Toubro Ltd. and State Bank of India were adding positively to the Nifty 50.

While Britannia Industries Ltd., HDFC Life Insurance Co., Titan Co., Sun Pharmaceutical Industries Ltd., and Wipro Ltd. were weighing on the indices,

All sectoral indices rose except Nifty Pharma and Nifty Media. Nifty Bank and Nifty Energy rose the most

The broader markets underperformed their larger peers but rose. The S&P BSE MidCap was up 1.19%, while the S&P BSE SmallCap was 1.20% higher.

All 20 sectors compiled by BSE advanced. S&P BSE Oil and Gas and Utilities rose the most.

The market breadth was skewed in favour of the buyers. About 2,390 stocks rose, 1,446 declined, and 182 remained unchanged on the BSE.