The last two trading sessions have seen Indian stock markets build on the recovery, with both key indices Sensex and Nifty hovering in positive territory today. Major blue-chip companies from sectors like banking, metals and energy were contributing the most to the morning uptrend.
This follows the confirmation of Narendra Modi being unanimously elected leader of the National Democratic Alliance coalition for a consecutive third term after last week’s general election results. Investors appear to welcome the prospect of policy continuity under his stewardship.
At open, the BSE’s flagship Sensex index had advanced nearly 700 points. The broader Nifty 50 also climbed over 179 points from its previous close. Among top gainers were stocks like State Bank of India, Tata Steel, HCL Technologies and NTPC.
Foreign institutional investors were net sellers for a third straight session, though their pace of selling eased. Asian markets showed a mixed response early on but positive finishes on Wall Street overnight lent support.
With political stability assured for the next five years, analysts feel the medium-term investment environment remains favorable. Markets will keenly watch high-frequency economic data and global cues for further directions. However, the underlying sentiment on Dalal Street remains positive for now as trading resumes post the eventful election period.
