Nifty 50 Surges Over 400 Points, Sensex Reclaims 80K: Experts Highlight Top Stock Picks
Building on the momentum from Friday’s rebound, the Indian stock market started the week strong, with significant gains in early trading. The Nifty 50 index opened higher at 24,253, quickly climbing to an intraday high of 24,330, marking a 423-point rally from its previous close of 23,907.
Similarly, the BSE Sensex opened at 80,193 and peaked at 80,452 in the morning session, recording a jump of 1,355 points. The Nifty Bank index also saw robust gains, opening at 52,046 and reaching an intraday high of 52,232, reflecting an impressive 1,100-point surge.
Factors Driving the Rally
Political Stability After Maharashtra Election Results
The decisive victory of the BJP-led alliance in Maharashtra’s elections played a crucial role in boosting investor sentiment. According to Palka Arora Chopra, Director at Master Capital Services, the win is expected to bring political stability and strengthen pro-business policies, positively influencing sectors such as infrastructure, urban development, and manufacturing.
“The continuity of policy direction, particularly in infrastructure development, is likely to attract further investments. This could lead to significant activity in the construction and real estate sectors,” Chopra added.
Reliance’s Strong Performance Amid Geopolitical Tensions
Reliance Industries, a heavyweight in the Sensex, gained around 2.5% during early trade. Mahesh M. Ojha, AVP at Hensex Securities, attributed this to rising crude oil prices driven by escalating geopolitical tensions. The company is poised to benefit from increased margins on existing stockpiles, along with continued growth in its retail and telecom businesses.
“Reliance looks strong for both short-term and long-term investors, given the positive trends in its core and diversified operations,” Ojha noted.
Sectoral Outlook
The election results have shifted investor focus from defensive sectors like FMCG and pharma to more aggressive plays in railways, infrastructure, and banking.
Avinash Gorakshkar, Head of Research at Profitmart Securities, observed that government initiatives in infrastructure and railways could drive demand in these sectors. Additionally, increased credit demand from infrastructure projects is likely to benefit banking stocks.
“The alignment of policies between the central and Maharashtra state governments ensures a conducive environment for growth in these sectors,” Gorakshkar stated.
As the market gains momentum, experts suggest keeping an eye on infrastructure, banking, and energy sectors for potential opportunities.
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