- Apollo Hospitals share price falls 3% after poor Q1 results – what should investors know?
- Instagram users ALERT! Are you being tracked by Meta-owned platform?
- Syrma SGS Technology IPO subscription opens today: Check price band, allotment and listing date
- BMW M4 Competition Coupe 50 Jahre M Edition launched in India: Check price and specifications
- Atal Pension Yojana Income Tax benefit for salaried employees after new rule: All you need to know
Rs 6 lakh crore in 5 days! How Modi win increased investors' wealth in historic week
It has been a spectacular week for the markets with Sensex, Nifty as well Bank Nifty hitting record highs after the victory of Prime Minister Narendra Modi-led NDA in the just-concluded Lok Sabha elections.
It has been a historic week for the markets with Sensex, Nifty as well Bank Nifty hitting record highs after the victory of Prime Minister Narendra Modi-led NDA in the just-concluded Lok Sabha elections. On the result day, Nifty50 crossed the record 12,000-mark while BSE Sensex crossed the 40,000 level for the first time in history. Bank Nifty also hit a record new high of 31,705. On Friday, Sensex closed at 39,434.72 and Nifty at 11,844.10. In the unprecedented rally, investors too got richer by a whopping Rs 6 lakh crore during the week (May 20-May 24). On May 17, Sensex had closed at 37,930.77. On May 19, the exit polls predicted the return of PM Modi to power. The effect of exit poll results reflected on the Sensex on May 20 (Monday) as it ended the day at 39,353.
During the week ending Friday, the total market capitalisation of BSE increased to Rs 152.7 lakh crore (on May 24) from Rs 1.46 lakh crore (on May 17).
Market experts have positive expectation from the Modi government's second term and the current rally is expected to grow.
Sensex at 45,000!
Brokerage firm Morgan Stanley sees BSE Sensex at 45,000 and NSE at 13,500 by June 2020. A report by Edelweiss Research said, "With the election event now behind, the focus now shifts back to business -- muted, weak on risk appetite and earnings, and we anticipate moderate market returns (3 per cent-plus till June 2020) over the year given high valuations."
In a single-day alone on Friday, investors' wealth zoomed Rs 2.53 lakh crore as the Sensex shot up over 623 points after a decisive mandate for the Narendra Modi-led BJP in the Lok Sabha elections. The BSE Sensex closed at 39,434.72, up 623.33 points or 1.61 per cent.
During the day, it jumped 665.58 points to 39,476.97. Led by the rally in equities, the market capitalisation of BSE-listed companies rose by Rs 2,53,830.19 crore to Rs 1,52,71,407.47 crore.
Riding on the popularity of PM Modi, BJP has won 303 of 543 seats in the Lower House of Parliament.
"With the decisive mandate, we expect policy continuity and look forward to next generation of reforms, which will take the Indian economy to the next phase of accelerated growth. The mandate augurs well for an environment of positivity for equity and could trigger a movement from merely a narrow market performance to a broad-based rally involving mid- and small-cap stocks. In this environment, we expect domestic cyclicals which include industrials and financials to outperform," PTI quoted Vijay Chandok, managing director and chief executive officer, ICICI Securities. as saying.
On Friday, 26 companies in the 30-share pack closed the day with gains led by ICICI Bank, Larsen and Toubro, Bharti Airtel, Vedanta and Tata Motors rising up to 5 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.