News of BJP’s win pushes rupee up, financial markets look promising

After the spectacular win by the Modi Government in the Assembly elections, it seems India’s financial market has responded in kind.

Sensex and Nifty edged higher on Tuesday after Narendra Modi led Bharatiya Janata Party won the assembly election in the states of Gujarat and Himachal Pradesh. BSE Sensex gained 130.4 points to open at 33,732.08 whereas NSE Nifty jumped 26.05 points to begin at 10,414.8. Shares of Tata Motors, Hero MotoCorp, Coal India, ONGC were the top gainers in the early trade.

The benchmark Sensex rose as much as 145.05 points to hit the day’s high at 33,746.73 and the broader Nifty advanced 42.75 points to mark the day’s high at 10,431.5. Earlier yesterday, Sensex and Nifty ended little higher as Narendra Modi led BJP managed to get only a narrow majority in Gujarat elections as against strong margin predicted by exit polls earlier last week.

After losing Gujarat and Himachal Pradesh, now Congress has left with only 4 states in power, namely, Punjab, Karnataka, Mizoram, and Meghalaya.

Shares of Tata Motors, Hero MotoCorp, Coal India, ONGC, Maruti Suzuki, Dr Reddy’s gained up to 1.6% while Bharti Airtel, IndusInd Bank, Infosys, HDFC, Kotak Mahindra Bank lost up to 0.7%. The stock of Airtel shed 0.97% to the day’s low of Rs 521 after India’s largest telecom operator Bharti Airtel signed an agreement with Millicom International Cellular S.A. to acquire 100% stake in its Rwanda operation which operates under the brand name of Tigo Rwanda.