Mumbai: The benchmark Sensex on Tuesday crossed 24,000 level for the first time and ended at a new closing peak of 23,871.23, recording gains of 320 points after exit polls showed the BJP-led NDA is projected to form the next government.
The NSE Nifty also spurted by 94.50 points to close at a new record of 7,108.75, after logging a fresh all-time intra-day high of 7,172.35 points. During the session, the 30-share BSE Sensex scaled its fresh life-time high of 24,068.94 points. It settled for the day at 23,871.23, a third straight record closing. This was a gain of 320.23 points, or 1.36 per cent over Monday's close.
The Sensex has now spurted by over 1,500 points in three days. Stocks of power, consumer durables, oil and gas, IT, PSUs, capital goods, realty and FMCG continued their winning spree. The BJP-led NDA is projected to form the government at the Centre with exit polls on Monday night giving between 249 and 290 seats to the Narendra Modi-led grouping, which is close to the half-way mark in the 543-member Lok Sabha.
"Market sentiment has been boosted by exit poll results indicating that BJP shall be able to win by majority. Investors have pegged strong hopes with the new government and optimism is seen ahead of final results," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
The broad-based Nifty of the National Stock Exchange gained 94.50 points, or 1.35 per cent, to settle at record closing of 7,108.75. Its earlier peak on a closing basis was 7,014.25. In three days, Nifty has gained about 450 points. Shares of BHEL surged 10.25 per cent to Rs 218.80 following reports that the Cabinet is likely to ratify the decision to sell 4.66 per cent stake in the power equipment maker through a block deal.
Other prominent contributers to the Sensex were Reliance Industries which rose 3.15 per cent, Hero MotoCorp by 5.39 per cent, Larsen and Toubro by 1.56 per cent, ONGC by 3.81 per cent and Tata Power by 3.62 per cent.
With continued improvement in trading sentiments, buying activity by retail investors spread to small-cap and mid-cap stocks, brokers said. Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mutual Fund, said: "Once the election results are announced, investor focus is likely to shift towards composition of the new government and likely policy initiatives in the run-up to the budget."
A firming trend in the other Asian markets, a higher opening on the European markets and a record closing on the US markets in Monday's trade too buoyed the trading sentiments in India, traders said.
Among the 30 Sensex components, 24 stocks gained, while Dr Reddys, HDFC Bank, Hindalco Industries, Mahindra and Mahindra, Sun Pharma and Tata Motors ended in negative zone on profit-booking.
Sectorally, the power sector index gained the most by surging 3.26 per cent, followed by consumer durables by 2.92 per cent and oil and gas index by 2.84 per cent. The IT index rose by 2.59 per cent and PSUs index by 2.45 per cent. However, healthcare sector index slipped 0.45 per cent.
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