Another day, another high on D-St with bulls in mood for poll dancing
Sensex crossing the 69,000 mark for the first time on Tuesday as the market continued to ride the bullish momentum driven by pick up in foreign fund flows and Bharatiya Janata Party's wins in the recent state elections.
The Nifty gained 168.30 points or 0.81% to close at 20,855.10. The Sensex rose 431 points or 0.63% to end at 69,296.14.
Both indices had surged over 2% on Monday in response to BJP's victory in three out of the four key state elections, which is seen as a harbinger of the party's performance in the crucial general elections in 2024.
Adani Group shares jumped between 6% and 20% on Tuesday after the US International Development Finance Corp (DFC) dismissed the allegations of short-seller Hindenburg Research as «not relevant». Bank stocks were among the other notable gainers with the Bank Nifty index gaining 1.25%.
Analysts said technical indicators are pointing to more upside in the Nifty 50.
«There is a breakout from the rounding bottom pattern in the Nifty after consolidating from October 2021 to June 2023,» said Dharan Shah, founder of Tradonomy, an investment advisory.
«The pre-election rally coinciding with this pattern is supporting the rally.»
According to IIFL Alternative Research's study of market performances before and after general elections since 1980, the Sensex has returned an average of 16% in the six months before the elections. In the three months before the elections, the index has returned 8% on average.
The Sensex and Nifty have run up close to 11% in a near one-sided rally since October 26, raising concerns that the current market levels are overbought.
«Despite a strong rally of almost 2,000 points in the markets, the valuations are still comfortable,» said Sneha Podar,
