Benchmark indices celebrated the BJP-led Mahayuti alliance's landslide win in the Maharashtra election on Monday. The alliance won 235 seats with 49.6% of the vote share, with the Opposition Maha Vikas Aghadi (MVA) bagging just 49 seats and 35.3% of the votes. The stellar election performance of BJP and its allies was reflected in the market sentiment on Monday.
Sensex closed above the key 80,000 mark on Monday with Nifty too breaching the 24,000 mark. The 30-stock index ended 992.74 pts higher at 80,109 and Nifty rose 314 pts to 24,221. Market cap of BSE-listed firms rose to Rs 439.58 lakh crore in today’s session.
Of 30 Sensex stocks, 24 shares ended in the green.
Capital goods, banking, oil and gas, and consumer durables stocks led the rally with the BSE capital goods index gaining 2204 pts, BSE bankex rising 1198 pts, BSE oil and gas index climbing 838 pts and BSE consumer durables stocks gaining 619 pts, respectively. All 19 BSE sectoral indices ended in the green.
With benchmark indices rallying for two consecutive sessions, ahead of the monthly expiry this week, some analysts see more upside and others expect the market to see consolidation ahead.
Here's a look at what they said on the outlook of equity market.
Prashanth Tapse, Senior VP (Research), Mehta Equities said, "Technically speaking, Nifty and Sensex are still at oversold conditions with immediate upside hurdles seen at 24,515 and then at psychological 25,000 mark while support is placed at 23,921 mark."
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas said, "On the daily charts, we can observe that the Nifty is in the process of retracing the fall it has witnessed from 26277 – 23260. We expect the retracement to continue towards 24770, which coincides with the 50% Fibonacci retracement level. Dips towards support zone 24,120 – 24,070 should be considered as buying opportunity."
Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher said, "Investors are optimistic that sectors like infrastructure, urban development, and manufacturing will benefit from BJP’s policy focus. However, concerns remain over global geopolitical uncertainties and continued selling by foreign investors. The dollar index, which climbed 0.43% to 107.52, reflected lingering risk aversion in global markets. Despite these challenges, positive domestic cues and political stability helped lift market sentiment. The strong showing by the BJP and its alignment with growth-driven policies boosted investor confidence, paving the way for a potential market recovery."
Rupak De, Senior Technical Analyst, LKP Securities said,"The index has moved above the 21 EMA, indicating improving sentiment. The RSI is in a bullish crossover and trending upward. The sentiment is expected to remain positive in the short term, with buying on dips likely to favor traders. On the higher side, 24,500 is expected to act as a crucial resistance; a decisive move above this level could trigger a further rally. Support on the lower side is placed at 23,950–24,000."