oppn parties BJP's Wins Sets Stock Markets On Fire

News Snippets

  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
Devendra Fadnavis to be the next chief minister of Maharashtra after Eknath Shinde agrees to join the government as deputy CM
oppn parties
BJP's Wins Sets Stock Markets On Fire

By Linus Garg
First publised on 2023-12-05 15:58:30

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

After the impressive performance by the BJP in the three Hindi heartland states of Rajasthan, Madhya Pradesh and Chhattisgarh, the stock markets in India are on fire. In just two trading sessions on Monday and Tuesday after the results were announced on Sunday evening, the Sensex has jumped by over 1800 points and the Nifty by 587 points. Scaling new closing highs, the Sensex closed at 69296 and Nifty at 20855 on Tuesday. Investors see in these BJP wins a confirmation that the party is most likely to return to power in 2024 with a substantial majority which will result in continuance of policy and long-term growth, both things necessary for rise in investor wealth.

The markets were rising since the beginning of November due to a host of factors. The Indian economy was proving to be resilient in the face of global slowdown and recorded a better-than-expected growth in the second quarter of FY24 buoying investor sentiment. With the release of hostages in batches, the war clouds in the Middle-East were also receding, reducing the possibility of disruption in supply chains. After a huge scare, oil prices had also shown a declining trend and have gone down by 7% from the beginning of November. Investors also expect the US Fed to cut rates earlier than expected and the US bond yields were easing. Finally, net FPI inflows in the first few days of December have already crossed the amount invested in the whole month of November.

Since the sentiment was positive in the market, the BJP wins gave it the impetus needed for a bull run. The Adani group shares have also contributed in the big jump after the US government termed the allegations against the group made by Hindenburg as 'not relevant', at least for Adani Ports, after a due diligence conducted by the International Development Finance Corporation. The US government approved a $553mn extension to the group for its container terminal in Sri Lanka. The shares of all Adani companies have surged by more than 10% and the increase in market capitalization has once again propelled Gautam Adani in the top 20 of the wealthiest persons in the world list.