Sensex Rebounds to 80K Level; Nifty Jumps More Than 1% Following Mahayuti’s Victory in Maharashtra

India’s benchmark equity indices, Sensex and Nifty, witnessed a significant rally on Monday, each rising over 1% as investor sentiment was buoyed by a surge in blue-chip stocks. The rally was further fueled by the Bharatiya Janata Party’s (BJP) impressive electoral performance in Maharashtra, where the party secured a historic number of seats. This decisive victory enabled the BJP-led Mahayuti alliance to achieve a landslide win, reinforcing political stability and boosting market confidence. The election outcome has been perceived as a positive signal for economic growth and policy continuity, prompting increased buying activity across various sectors.

Building on the momentum from the previous session’s strong performance, the BSE Sensex recorded a sharp increase of 992.74 points, or 1.25%, to close at a new high of 80,109.85. Intraday trading saw the index touch an impressive peak of 80,473.08, representing a substantial gain of 1,355.97 points or 1.71%. This surge underscored the growing optimism among investors, with several market participants anticipating further upside in the coming sessions, driven by favorable domestic and global cues.

Similarly, the NSE Nifty experienced a robust upward movement, climbing 314.65 points, or 1.32%, to settle at 24,221.90. The index’s performance reflected widespread investor confidence, with gains across multiple sectors contributing to the broad-based rally. Market analysts noted that the Nifty’s rise signals sustained bullish sentiment, driven by a combination of political clarity, strong corporate earnings, and expectations of continued foreign inflows.

The upward momentum in the market was largely driven by key blue-chip stocks from the 30-share Sensex pack. Among the top performers were Larsen & Toubro, State Bank of India, Adani Ports, Reliance Industries, Power Grid, ICICI Bank, HDFC Bank, Tata Consultancy Services, Kotak Mahindra Bank, and Axis Bank. These companies played a critical role in lifting the index, with their strong performance driven by positive earnings reports, sectoral tailwinds, and increased institutional buying. Their gains underscored the market’s confidence in the resilience and growth potential of India’s leading corporations.

In contrast, JSW Steel, Tech Mahindra, Infosys, Maruti, Asian Paints, and HCL Tech lagged behind during the session, closing with losses and emerging as the day’s underperformers.

In a significant update, Zomato, the leading online food delivery platform, is set to join the BSE Sensex, replacing JSW Steel effective December 23. This inclusion is part of the latest index reconstitution announced by Asia Index Private Ltd, a BSE subsidiary, highlighting the growing influence of the digital economy in India’s benchmark indices.

“The ability of the market to surprise was evident in the 557 points spurt in the Nifty on Friday. This sharp upswing will continue today assisted by the super NDA performance in Maharashtra. The political message from this election is huge and highly positive from the market perspective,” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

The BJP delivered a remarkable electoral performance in Maharashtra on Saturday, securing a record-breaking number of seats and driving the Mahayuti alliance, led by the party, to a decisive landslide victory. Meanwhile, in Jharkhand, the INDIA bloc reclaimed power, buoyed by an impressive showing from the Jharkhand Mukti Morcha (JMM), signaling a significant political shift in the state.

Across Asian markets, Seoul and Tokyo closed higher, reflecting positive investor sentiment, while Shanghai and Hong Kong ended the session in negative territory, weighed down by regional concerns.

European markets were trading in positive territory, continuing the global rally, while U.S. markets closed on a high note on Friday, adding to the optimistic outlook for equities worldwide.

In the commodities market, Brent crude, the global oil benchmark, edged down by 0.40%, settling at USD 74.87 per barrel, amid concerns over demand and supply dynamics.

On the domestic front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,278.37 crore on Friday, according to data from stock exchanges, reflecting a cautious approach despite the bullish sentiment.

Despite FII selling, the Indian stock market ended the week on a strong note. The BSE Sensex surged by 1,961.32 points, or 2.54%, to close at 79,117.11, marking a significant rebound. Similarly, the NSE Nifty climbed 557.35 points, or 2.39%, to settle at 23,907.25, driven by broad-based gains across sectors.

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