Prime Minister Narendra Modi with Delhi Lok Sabha Election Candidates at Ram Lila Ground during BJP Rally in New Delhi on Wednesday/PHOTO-DALIP KUMAR
Investor wealth increased by Rs 2.53 lakh crore on Friday as the Sensex shot up over 623 points after Prime Minister Narendra Modi's victory in the Lok Sabha elections.
benchmark closed at 39,434.72, up 623.33 points or 1.61 per cent. During the day, it jumped 665.58 points to 39,476.97.
Led by the rally in equities, the market capitalisation of BSE-listed companies rose by Rs 2,53,830.19 crore to Rs 1,52,71,407.47 crore.
The BJP has won over 300 seats on its own out of 542 seats in the Lok Sabha elections.
"With the decisive mandate, we expect policy continuity and look forward to next generation of reforms, which will take the Indian economy to the next phase of accelerated growth. The mandate augurs well for an environment of positivity for equity and could trigger a movement from merely a narrow market performance to a broad-based rally involving mid- and small-cap stocks.
"In this environment, we expect domestic cyclicals which include industrials and financials to outperform," said Vijay Chandok, managing director and chief executive officer, ICICI Securities.
From the 30-share pack, 26 companies closed the day with gains led by ICICI Bank, Larsen and Toubro, Bharti Airtel, Vedanta and Tata Motors rising up to 5 per cent.
All 19 BSE
sectoral indices traded in the green, led by realty, capital goods, industrials, telecom and automobiles -- gaining as much as 4.25 per cent.
In the broader market, the BSE
Smallcap index soared 2.43 per cent and Midcap climbed 2.09 per cent.
On the BSE, 1,833 scrips advanced, while 699 declined and 148 remained unchanged.
"With the election event now behind, the focus now shifts back to business -- muted, weak on risk appetite and earnings, and we anticipate moderate market returns (3 per cent-plus till June 2020) over the year given high valuations," according to a report by Edelweiss Research.
West Bengal CM Mamata Banerjee during an election rally in Kolkata on Thursday | Photo: PTI