MUMBAI: On the back of sharp buying over the past three sessions, India’s equity market recovered from the earth-shattering fall it witnessed on the Lok Sabha election result day (Tuesday). On Friday, India’s frontline indices – Sensex and Nifty- gained more than 2% each and investors’ cumulative wealth surged by Rs 7.5 lakh crore.
The Sensex hit its fresh all-time high of 76,795.31 during the Friday session before closing at 1,619 points, or 2.16%, higher at 76,693.36. Nifty 50 closed 469 points, or 2.05%, higher at 23,290.15.
The recovery is attributed to political stability at the centre as Prime Minster Narendra Modi’s BJP, despite failing to secure 272 seats, has received support from key NDA allies. The fresh buying is also attributed to the Reserve Bank of India maintaining a status quo on the repo rates and policy stance while revising the GDP estimates for FY25 upwards in its latest MPC meeting.
“The anticipation of stability within the coalition government at the centre, coupled with the RBI’s upward revision of its growth forecast for FY25 to 7.2%, fuelled a broad-based rally in the domestic market. 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.