BJP agenda wakes up market bull

Key benchmark indices on Wednesday surged after the main opposition party — the Bharatiya Janata Party (BJP) — in its Lok Sabha polls manifesto released early this week promised more business-friendly policies if the party comes to power after the elections.

 

This apart, gains in Asian and European stocks also revved up investor sentiment on the D-Street.

 

The market breadth, indicating the overall health of the market was strong as both the premium indices of BSE and NSE hit lifetime highs on an intraday as well as closing basis.

 

Market sentiment was also boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Monday as they bought shares worth a net of Rs 703.71 crore, as per data from the bourses. 

 

The stock markets were closed on Tuesday on account of Ram Navami.

 

During the day's trade, index heavyweight Reliance Industries (RIL) edged higher, while Bharat Forge and Crompton Greaves hit 52-week highs. Sector-wise, bank shares rose across the board, while aviation stocks rallied and pharma stocks were on an upward trajectory.

Bank stocks were in demand as the BSE Bankex was up 3.45 per cent. Union Bank of India (up 6.49 per cent), Bank of Baroda (up 5.41), Federal Bank (up 4.89), Axis Bank (up 4.44), IDBI Bank (up 4.36), Yes Bank (up 4.19), ICICI Bank (up 4.18), Punjab National Bank (up 3.99%), Bank of India (up 3.78), Canara Bank (up 3.67), IndusInd Bank (up 3.63), State Bank of India (up 3.23), HDFC Bank (up 2.34) and Kotak Mahindra Bank (up 2.19), edged higher.

 

Commenting on the stock market, Kotak Securities' Dipen Shah said, “Markets started off on a steady note but gradually rose over the day to end with more than 1.5 per cent gains.

Once again, domestic-oriented stocks led the rally with IT ending lower for the day. Continuing expectations on the political outcome supported the sentiment."

 

Further, Shah maintained that in the short term, markets will continue to be volatile at current levels with a positive bias.

"Valuations are above the long-term average and there is a possibility of sub-normal monsoons.