The massive victory of the alliance led by the Bharatiya Janata Party (BJP) in the Maharashtra Assembly elections has given markets hope.
Positive domestic cues and a halt in foreign investor selling propelled the Indian main equity indices, the BSE Sensex and Nifty 50, to a high at Monday's opening bell.When the session began, the BSE Sensex was up 1,227 points, or 1.55%, at 80,344.78, while the Nifty 50 was up 370 points, or 1.55%, at 24,277.
The Bharatiya Janata Party (BJP)-led coalition's overwhelming success in the Maharashtra Assembly elections, combined with the upbeat sentiment in international markets, is giving investors hope and extending the gains from the previous week's last trading session.
Nonetheless, persistent selling by foreign investors and worldwide geopolitical unpredictabilities still affect investor sentiment.
In its letter, Motilal Oswal stressed that the political clarity that will come after the elections may give investor sentiment a much-needed lift. According to the firm, recent market corrections—roughly 9% across the Nifty50, Nifty Midcap 100, and Nifty Smallcap 100—were mostly caused by geopolitical uncertainty, persistent foreign withdrawals totaling about $14 billion since October, and poor corporate earnings. The central government may concentrate on raising fiscal spending to spur growth in light of the BJP's impressive results in Maharashtra and Haryana. "A small risk-on rally may be possible as a result of this election outcome, improved rural demand following a successful monsoon, and anticipated robust Kharif output," Motilal Oswal said.
Worldwide Cues
Asia-Pacific markets, meanwhile, saw a majority of Monday morning's gains.
The broad-based Topix was up 1.07 percent, Japan's Nikkei 225 was up 1.61 percent, and Australia's S&P/ASX 200 was up 0.7% at 8,452.7.
The small-cap Kosdaq experienced a greater increase of 2.36 percent, while South Korea's Kospi witnessed a 1.45 percent gain.
While mainland China's CSI 300 remained steady with a bearish bias, Hong Kong's Hang Seng index increased by 0.31 percent. The Shanghai Composite increased by 0.21%.
When Trump enters office in January, traders are anticipating his agenda, which is anticipated to include deregulation, tax cuts, and tariffs. Markets are anticipating Trump's choice for Treasury secretary, as he has been appointing high-ranking people to his administration.
Each of the three Wall Street indices had a weekly gain and ended the week higher. The Nasdaq Composite increased 0.16 percent to 19,003.65, the S&P 500 increased 0.35 percent to 5,969.34, and the Dow Jones Industrial Average up 0.97 percent to 44,296.51.
After four consecutive weeks of declines, Europe's Stoxx 600 share index closed the week 1% higher. MSCI's global stock index increased 0.33 percent to 854.22, gaining around 1.4% for the week.
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