NDA bonhomie & Modi reform speech unleash stock market rally
Image credit X @BJP4India
Sensex rally gains from Modi speech in Central Hall of parliament
By S Jha
New Delhi, June 7: Sensex rallied by over 1600 points on Friday after Prime Minister Narendra Modi spoke of 10-year agenda. Nifty also vaulted by over 460 points. The Bank Nifty also rallied with gains of over 500 points.
The Reserve Bank of India also maintained a status quo on the headline policy rates. The RBI announced the decisions of the monetary policy committee on Friday morning.
The street is now expecting the first rate cut in the next three months. The expectation has gained from the first rate cut this week announced by the European Bank.
With inflation in check, the market participants are expecting the RBI to cut the Repo Rate in August by 25 basis points. The Federal Reserve of the US is also likely to affect the first rate cut around August as per the claims of the market participants.
Speaking in the Central Hall of parliament, Modi spoke of reforms as the core of the governance agenda. He spoke of reducing the role of the government from the life of the people in the lower middle and the middle class.
The market participants believe that the new government in the office will continue on the path of reforms. The emphasis on improving the ease of life also cheered the market participants.
Bank Nifty from the bottom seen a day after the election result has staged over 3000 points rally. Nifty is approaching the all-time high mark of 23300. Sensex has also done a turnaround from the low seen a day after the election verdict.
The market rally was led by the IT sector. Intense buying interest was seen in the IT counter.
Wipro led from the front. The IT behemoth gained five per cent. Tech Mahindra also rose sharply. Infosys was also strong on the street.
Hectic buying was seen in the smallcap and the midcap IT counters. The likes of Persistent Systems, Mastek, Happiest Minds, Birla Soft, KPIT Tech, and others saw massive buying street.
Mahindra and Mahindra also rose sharply on Friday. The auto giant has been on an elevating trajectory. It touched the levels of ₹2865 during the day.
Bajaj Finance was also strong on Friday. The all round buying in the street eased stress from the investors.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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