Sensex, Nifty at fresh closing highs! Market erases June 4 losses as bulls gung-ho on Modi 3.0, India growth

Benchmark indices Sensex and Nifty hit record closing highs on Friday as the bulls took the recent rally to the third consecutive session, following PM Narendra Modi's victory speech on June 4 where he ensured political stability and supportive policies in Modi 3.0. Added to that was a strong GDP forecast by the RBI that boosted investor sentiment today.  In the process, stock market recouped entire losses it incurred on June 4. 

The six member RBI committee maintained status quo and suggested "withdrawal of accommodation" with a 4:2 majority, which was lower compared to the previous meeting, which had a majority of 5:1, raising hopes that the central bank was preparing the market for a change in stance in the upcoming meeting.

Sensex made a fresh all-time high of 76,795.31, before closing the day at 76,693.36, up 1,618.85 points or 2.16 per cent. while 30 out of 30 index stocks settled higher, the gains were majorly led by Reliance Industries, Infosys, Mahindra & Mahindra and Bharti Airtel. 

Nifty could not surpass its recent high of 23,338.70 but settled at a closing high of 23,290.15. "Nifty has to hold above 23,200 for an upside move towards 23,500, followed by 23,700; whereas supports are placed at 23,100 and 23,000," Chandan Taparia of Motilal Oswal Securities. 

With this, Dalal Street investors have almost recovered from the election day jitters, as reflected in the BSE market capilaisation, which stood at Rs 4,23,43,210 crore today against Rs 4,25,91,511 crore on June 3, the day exit polls were out. 

"The Indian market surpassed its previous record high set on exit-poll day and reached a fresh peak. Though the last mile towards the inflation target remains sticky, investors are expecting the MPC to be one step closer to the easing cycle," said Vinod Nair, Head of Research, Geojit Financial Services.

PSU stocks such as Bharat Dynamics, SAIL, NBCC and Bharat Electronics climbed 3-4 per cent each. ONGC, Cochin Shipyard, NTPC and MMTC advanced over 3 per cent each. Technology stocks such as Tech Mahindra, Wipro and  Infosys gained 4-5 per cent.  Stocks such as Mahindra & Mahindra, Tata Steel, Bharti Airtel and Bajaj Finance added up to 4 per cent.