Nifty Soars To Record High On BJP Victory In State Elections

Business

oi-Sunil Fernandes

The Nifty conquered the record high hit on March 4, 2015, almost after two years.

By Sunil Fernandes

Updated: Tuesday, March 14, 2017, 9:46 [IST]

Benchmark indices opened higher and the Nifty soared to a new record high crossing the March 4, 2015, figure of 9,119 points to 9,122 points. The Sensex was trading higher by 438 points at 29,441 points.

The smart rally was following the spectacular election victory for the ruling BJP in the crucial state election of UP and also Uttarakhand. The surge was on hopes that the BJP would now set for another victory in the elections in 2019 and also be able to secure a majority in the Rajya Sabha by 2020.

ICICI Bank led gainers with a sharp jump of 5 per cent, while Mahindra and Mahindra and Reliance Industries were the other gainers in trade. The only loser was Coal India, which was largely adjusting for going ex dividend. There is a high possibility that the spectacular rally may continue, though we may see some profit booking emerge at higher levels.

Domestic infows are also robust, which should keep the markets buoyant for some time to come. The only worry now is the likely possibility of a US Fed rate hike, which should lead to the market pausing for breath, before the possibility of the Sensex scaling a high, following in the footsteps of the Nifty.

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