Sensex, Nifty 50 Surged Post PM Modi’s Oath

NiftyTrader • June 10, 2024

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Since Modi has been re-elected as the Prime Minister of India, the BSE Sensex and NSE Nifty 50 have scaled their record high levels which a major contributing factor to the booming Indian stock market today. The enthusiastic reaction on the market reflects investors’ confidence in stable political environment which they hope will continue under the PM Modi leadership.

Morning Surge

Picking from early trade on Monday, the Indian stock market index, Nifty 50, showcasing above 23,400 levels for the first time in history while the Sensex stands above 77000 points for the first time ever. While Modi was being sworn into the office for the third consecutive time for prime minister ship of India on Sunday, the domestic equities market witnessed aggressive buying.

Mid-Day Market Dynamics

Despite the strong opening, the market experienced a stabilization by mid-day. Sensex was down 203.28 points or 0.27 percent at 76,490.08, and the Nifty was down 31 points or 0.13 percent at 23,259.20. The initial enthusiasm transitioned into cautious trading as investors began to lock in profits and await further policy directions from the newly sworn-in government.

Market Close

Adani Ports, Power Grid Corp, CIPLA, TATA Steel and Shriram Finance were among major gainers on the Nifty. Biggest losers on the Nifty were Tech Mahindra, Infosys, WIPRO, BAJAJ FINANCE and Hindalco.

On the sectoral front, the IT index fell 1.5 percent, metal down 0.3 percent and oil & gas down 0.2 percent, while realty index gained 1.3 percent, healthcare up 0.7 percent and power was up 0.4 percent.

Conclusion

In summary, the Sensex and Nifty 50’s record highs following PM Modi’s oath-taking ceremony as a clear evidence of investors’ confidence on political stability as well as on some expected economic reforms. Nevertheless, the flat trading noticed toward the latter part of the day indicates a conservative market that is waiting for definitive moves regarding the new government’s policies towards the economy.

Investors are advised to steer clear of the market at this time of political and economic disruption and to keep an informed and balanced approach.