Ai bot
Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Monday. While the BSE Sensex surged over 1,300 points, Nifty50 crossed 24,350 intraday. BSE Sensex ended the day at 80,109.85, up 993 points or 1.25%. Nifty50 closed the day at 24,221.90, up 315 points or 1.32%.
BJP’s improved electoral performance in state assemblies, following their inability to secure a Lok Sabha majority, helped ease investors’ worries regarding the government’s commitment to development and policy direction.
The top BSE Sensex gainers were; L&T, State Bank of India, Adani Ports SEZ, HDFC Bank, ICICI Bank, PowerGrid, RIL and Kotak Bank. The top BSE Sensex losers were JSW Steel, Tech Mahindra, Infosys, Asian Paints, HCL Tech and Maruti Suzuki.
According to an ET report, Public sector undertaking (PSU) stocks and those associated with capital expenditure led Monday’s market gains, rising up to 11%, with RITES, a PSU railway stock, showing the strongest performance. The Central Bank spearheaded PSU banking stocks’ surge of up to 8%, whilst construction company J.Kumar Infraprojects experienced a significant 16% increase during trading hours.
PSU and capital expenditure-related stocks had previously shown weak performance due to investor concerns about sluggish government expenditure, particularly in capital investments.
“On an immediate basis, we should see improvement in government capex spending momentum and order inflow in sectors such as railways and defence. For debt markets however, we are entering a phase of imprudent state fiscal management and hence higher State Development Loan (SDL) supply,” Elara Capital’s Garima Kapoor said.
Following the conclusion of elections and BJP’s strong showing in Haryana and Maharashtra, market analysts anticipate increased government spending, which had remained stagnant year-over-year during the initial six months of FY25.
