Nifty 50 Surges Over 400 Points, Sensex Reclaims 80K; Experts Suggest Stocks to Buy Today
Market Opening and Gains
The Indian equities markets opened with high gains in early morning trading on Monday, carrying forward the momentum from Friday's pullback rally. The Nifty 50 opened with a gap up at 24,253 and made sharp gains early on to touch an intraday high of 24,330, about 423 points above Friday's closing date. The BSE Sensex opened at 80,193 and reached an intraday high of 80,452, rising by 1,355 points. The Nifty Bank index also saw a strong rally, opening at 52,046 and peaking at 52,232.
Key Factors Driving the Rally
Two main factors are contributing to the rally in the Indian stock market today:
1. Maharashtra Election Results
The political stability brought in by the BJP-led NDA landslide victory in the Maharashtra Assembly elections has boosted investor sentiment, say observers. This political stability will have a positive confluence of sentiments in sectors such as infrastructure, urban development, and also manufacturing aligning with the policies of the BJP, adds Palka Arora Chopra, Director at Master Capital Services. Continuity of pro-business policies is likely to help construction, real estate, and related sectors.
2. Geopolitical Tensions and Reliance's rally
With the ongoing war between Russia and Ukraine, crude oil prices have now risen, and this was only going to add to the pockets of oil companies such as Reliance Industries. According to Mahesh M Ojha, AVP - Research at Hensex Securities, crude oil price hikes will perk up Reliance's margins in the short term. Moreover, its retail and telecom businesses are supposed to continue their uptrend, which saw the stock rise by 2.5% in the early morning trading.
Investment Shifts: From Defensive to Aggressive
After the Lok Sabha elections, investors had gone defensive, going for FMCG and pharma stock. However, post the Maharashtra election results, analysts predict the plays to get more aggressive into railways, infra, and banking. As long as the Maharashtra government keeps looking at those segments, stocks like banking ones will attract buying interest.
Stocks to Buy Today
Experts suggest looking at stocks in the railway, infrastructure, and banking sectors.
- Railway Stocks: RVNL, IRFC, Railtel, IRCON International
- Infrastructure Stocks: Larsen & Toubro (for the medium to long term)
- Banking Stocks: SBI, Canara Bank, Jammu & Kashmir Bank (public sector); ICICI Bank and HDFC Bank (private sector)
