Benchmark indices maintained uptrend, with the Nifty heading for closing above 9000 level for the first time in history on likely political stability for next seven years after BJP’s landslide victory in UP.
The 30-share BSE Sensex was up 486.74 points or 1.68 percent at 29,432.97 and the 50-share NSE Nifty gained 147.10 points or 1.65 percent at 9,081.65 while the broader markets underperformed.
The Nifty Midcap and Smallcap indices were up 1.3 percent each on strong breadth.
Arvind Sanger of Geosphere Capital Management says the improved political backdrop could cause market valuations to go above historic averages.
He noted that non-performing assets problems in the banking sector, and hiccups after implementation of the goods and services tax (GST) could lead to some dislocations in the market but will also provide opportunities to invest.
ICICI Bank, HDFC, ITC, L&T, Infosys, HDFC Bank and Reliance Industries were leading contributors to Sensex’s gains, up 1-6 percent whereas Coal India fell 5 percent as it goes ex-dividend.