Sensex rises 400 pts, Nifty above 22,700 as Modi magic helps calm D-Street
equity indices, Nifty50 and Sensex, opened higher for the second consecutive day on Thursday, led by banking stocks, as Narendra Modi is set to return to power for a third term after two key allies pledged their support to form a new government.
The BSE Sensex was trading 403 points, or 0.55%, higher at 74,785. Meanwhile, the Nifty50 was up 112 points, or 0.5%, trading at 22,732 around 9:18 am.
The National Democratic Alliance (NDA) on Wednesday formally named Modi to lead the government. Unexpected election results have meant that Modi's Bharatiya Janata Party needs to rely on alliance partners to stay in power.
Indian share benchmarks NSE Nifty 50 and S&P Sensex closed over 3% higher on Wednesday after slipping nearly 6% on Tuesday.
Meanwhile, in early trade, NTPC, SBI, and Power Grid from the Sensex pack opened 2.5% to 5% higher. Tech Mahindra, Tata Steel, Wipro, and HCL Tech also opened with gains, while HUL, Nestle India, Sun Pharma, and Asian Paints opened with losses.
On the sectoral front, Nifty Realty rose 3.9%, and Nifty PSU Bank surged 3.3%. Nifty Bank, Financial Services, IT, Media, Metal, Oil & Gas, and Consumer Durables also saw gains of up to 2%. On the other hand, Nifty FMCG and Pharma opened in the red.
Among individual stocks, BHEL hit a 10% upper circuit after receiving thermal power project orders, including one from Adani Power.
Experts View
«As the market comes back to normalcy after the abnormal volatility of the last three days, the global construct has turned favourable with rising
