Sensex soars 1k pts on BJP's Maha win

MUMBAI: The sensex soared nearly 1,000 points on Monday reclaiming the 80,000 mark after a month. This surge was fuelled by a combination of factors, including the BJP's landslide victory in Maharashtra, strong performance by blue-chip stocks, and rebalancing of stocks in MSCI's equity indices.

The sensex jumped 993 points to close at 80,110, while the Nifty climbed 315 points to settle at 24,222. Both indices recorded gains of over 1%. Market sentiment was significantly boosted by the BJP's win, which is expected to accelerate infrastructure projects in the state and contribute to overall economic growth.

L&T, SBI, and Adani Ports were among the top gainers in the sensex. Reliance Industries, PowerGrid, and major banking stocks also contributed to the rally. Real estate stocks also recorded significant gains as the new govt was expected to provide a boost to infrastructure and new housing.

While the overall market sentiment was positive, Adani group stocks presented a mixed picture. Five of the 10 listed Adani group firms ended lower, with Adani Green Energy falling over 8%. This decline comes after TotalEnergies halted new investments in Adani firms and the group faces ongoing scrutiny over bribery allegations. However, Adani Ports, ACC, Adani Enterprises, and Adani Wilmar all closed higher.

"Adani issues won't be able to affect general market mood for a sustained period. It will be stock-specific after a point in time. Sentiments can drive up/down only up to a point; beyond that it will be business prospects and fundamentals," said Manish Jain of Mirae Asset Capital Markets.

"NDA's win in Maharashtra is expected to ease worries over political instability on a national level, boosting risk-on sentiment among market participants," said Deepak Jasani of HDFC Securities. Zomato shares surged nearly 4% after the announcement that the food delivery giant will join the sensex on Dec 23, replacing JSW Steel. On Monday, foreign funds made net purchases of Rs 9,947 crore while domestic funds were net sellers.