Market in ‘Maha’ rally mode: Sensex surges 3,300 pts in two days; Adani stocks show resilience
Dalal Street has seen a strong rally in the last two sessions, with the equity benchmarks Sensex and Nifty surging over 4% during this period as investors rushed to buy beaten-down stocks in an oversold market. The market sentiment was lifted by a landslide victory for National Democratic Alliance (NDA) in Maharashtra, with the Mahayuti alliance, consisting of BJP, Shiv Sena and NCP winning 235 out of 288 assembly seats, at a strike rate of 81%.
Extending Friday’s rally, the BSE Sensex gained as much as 1,356 points, or 1.7%, to reclaim its important psychological mark of 80k, while the NSE Nifty surged 444 points, or 1.85%, to hit an intraday high of 24,352 levels. The market breadth, indicating the overall strength, was strong, with 2,833 of 4,124 stocks trading in green, while 1,105 were in red, and 186 were unchanged. Meanwhile, 393 stocks hit their upper circuit and 249 were locked in their lower circuit limits.
On Friday, the 30-share Sensex and Nifty50 jumped nearly 2.5% each to register their biggest single-day gain in five months after exit polls predicted that the BJP-led NDA would come back to power in Maharashtra.
In two sessions, the Sensex has risen over 3,300 points, and the Nifty50 climbed 1,000 points. The cumulative market capitalisation of BSE-listed companies increased by ₹14.2 lakh crore in two sessions to ₹440.74 lakh crore today.
"The ability of the market to surprise was evident in the 557 point spurt in the Nifty on Friday. This sharp upswing will continue today assisted by the super NDA performance in Maharashtra. The political message from this election is huge and highly positive from the market perspective,” says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Banking and IT are on a strong wicket assisted by fair valuations and reasonable growth prospects. Watch out for capital goods, telecom and pharma stocks,” he says.
Among individual stocks, ONGC, BEL, Adani Enterprises, L&T, and SBI were among top five gainers, rising in the range of 3-5%. On the other hand, JSW Steel, HCL Tech, Infosys, Tech Mahindra, and Asian Paints were among biggest losers, falling up to 3.
JSW Steel was the top loser after it was replaced by Zomato in the Sensex pack. The shares of Zomato rallied over 7% as the online food delivery company is set to be included in the Sensex pack, effective from December 23.
Meanwhile, Adani group stocks maintained an uptrend for the second consecutive session, with flagship Adani Enterprises gaining nearly 5%. All 11 listed entities of billionaire Gautam Adani-led conglomerate were flashing in green today, recovering from their last Thursday’s jolt, after the BJP-led Mahayuti alliance received a strong mandate in the 2024 Maharashtra assembly elections. The market experts opine that stability in Maharashtra could potentially lead to the continuity of Adani's redevelopment project in Mumbai’s Dharavi, especially after uncertainty following previous coalition shifts.
On the technical front, the Nifty is trading close to the 200-DMA and the lower end of a falling parallel channel, so there's plenty of support near 23,500, Axis Securities says in a note.
“Thursday's session traced a small doji-like candle after a large down candle the day before, suggesting selling pressure is reduced somewhat. Still, the market will have to rally above the Thursday high of 23676 for bulls to attempt a larger rebound, failing which support in the 23200 - 23300 zone may come into play. Both daily and weekly momentum remain negative, with the latter reaching deeply oversold territory,” says Akshay Chinchalkar, Head of Research at Axis Securities.
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