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Modi wave sweeps market: Sensex crosses 40,000 for first time ever, Nifty breaches 12,000

BusinessToday.In     May 23, 2019

Extending gains in the morning session today, Sensex gained 1,000 points to breach the historic 40,000 mark for the first time ever.

Nifty too crossed the key 12,000 mark and set a new record for the index's new high on the back of early counting in Lok Sabha election indicating PM Narendra Modi was set to storm back to power with a thumping majority.

At 10:44 am, Sensex was trading 964 points higher at 40,074 level. Nifty rose 2.52% or 296 points to 12,034 points. The record run has been fuelled by exit polls predicting Modi government to return at the Centre.

Gopkumar, ED and CEO at Reliance Securities said, "Markets were looking for stability, continuity and strong leadership rather than a fractured mandate - this has led to the new high. We believe India allocation from global funds will increase and more ETF flows are likely over the short term that could drive the markets even higher."

Share Market Live: Modi-Mania grips stock market; Sensex hits 40,000 for the first time, Nifty crosses 12,000 level

Gains in the benchmark indices were led by rally in banking, consumer durables and capital goods stocks on BSE. While BSE bankex rose 1408 points to 35616, consumer durables and capital good indices gained 370 and 235 points, respectively.

Amnish Aggarwal, Head, Research Prabhudas Lilladher said, "Election results are positive for the market as it gives a stable govt for the next 5 years. However, post initial euphoria, focus would shift to hardcore economic decisions and the manner in which slowdown and economy is handled in Modi2.0. We are positive on long term for the markets. Our NIFTY target in a bullish scenario is 13000, for which growth rates need to catch up."

Top gainers on Sensex were YES Bank (8.13%), SBI (6.59%) and IndusInd Bank (6.55%). Of 30 Sensex stocks, 28 were trading in the green.

Vedanta and TCS were the only losers on Sensex.

A rally in midcap (299 points) and small cap (230 points) indices on BSE also contributed to gains in the market.

Market breadth was positive with 1491 stocks rising compared to 523 falling on BSE.

Edited by Aseem Thapliyal

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