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The benchmark BSE Sensex ended higher by over 230 points and the NSE index Nifty above the crucial 10,450-mark as Prime Minister Narendra Modi steered the BJP to a record sixth term in Gujarat, albeit in a tight battle with the Congress, and a relatively more comfortable victory over the Grand Old Party in Himachal Pradesh.
The BJP was set to form the government with 99 seats, securing a vote share of 49.1 per cent, while the Congress’s tally stopped at 77 seats and a vote share of 41.4 per cent in the 182-member Gujarat Assembly. The BJP wrested Himachal Pradesh from the Congress by winning 44 of the 68 seats. although in a dramatic climax, its chief ministerial candidate, Prem Kumar Dhumal, lost from Sujanpur.
The 30-share BSE index Sensex ended higher by 235.06 points or 0.7 per cent at 33,836.74 and the 50-share NSE index Nifty closed up 74.45 points or 0.72 per cent at 10,463.20.
Barring IT and TECk, all other BSE sectoral indices ended in the positive zone. Among them, auto index was the star-performer and was up 3.42 per cent, followed by consumer durables 1.81 per cent, metal 1.49 per cent and realty 1.39 per cent, while IT index was down 0.46 per cent and TECk 0.06 per cent.
Gainers, losers
Top five Sensex gainers were Maruti (+5.33%), Hero MotoCorp (+4.7%), Tata Motors (+3.39%), Bajaj Auto (+2.87%) and Bharti Airtel (+2.5%), while the major losers were Wipro (-1.07%), Infosys (-1.04%), IndusInd Bank (-0.58%), HDFC (-0.49%) and Kotak Bank (-0.35%).
Blue chips benefited after the Bharatiya Janata Party sealed victories in his home state of Gujarat and Himachal Pradesh, raising hopes of continued reforms.
“Markets are now stabilised after a volatile session early on Monday as BJP emerged victorious in Gujarat. Optimism of passage of tax legislation by the US also boosts the sentiment,” said Anand James, chief market strategist, Geojit Financial Services.
Auto stocks contributed the most to the indexes' gains, with NSE Auto index climbing as much as 1.75 per cent to a record. Mahindra and Mahindra Ltd climbed to an all-time high of Rs 1,551.95. Metal stocks continued to gain for a fourth straight session, with NSE Metal index advancing as much as 1.43 per cent.
Asian shares
Asian stocks advanced on Tuesday after a record-setting session on Wall Street on bets that US lawmakers would pass a major tax overhaul, while the dollar sagged as traders were less sanguine about the bill's economic impact.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. Australian shares added 0.4 per cent, South Korea's KOSPI climbed 0.6 per cent and Japan's Nikkei gained 0.2 per cent.
Wall Street hit record highs on Monday on growing optimism about lower corporate tax rates as the Republican tax Bill moved closer to passage.
(With inputs from Reuters)
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