Mumbai: Big bulls were raging on Dalal Street as bullish investors bet big on the Lok Sabha election outcome favouring NDA-led government. On heels of exit poll, it was another record breaking day with the Sensex ending above 23,500.
The Sensex was up 556.77 points or 2.42 percent at 23551. Nifty posted biggest two-day gains since August 2011 and ended at 7014.25, up 155.45 points or 2.27 percent. Dealers say that foreign investors are pumping heavy funds in India. Analysts feel it looks like some panic buying in anticipation of decisive mandate and Nifty may hit 7400 levels in current momentum.
Both the Nifty and Sensex gained over 5.3 percent in last two trading sessions. Bank Nifty gained over 300 points to end at life high of 14,091. HDFC Bank was top contributor to Bank Nifty, contributing over 170 points. ITC and HDFC Bank wre top contributors to Nifty, contributing over 40 points. PSU, oil & gas stocks lead market rally, gain over 3 percent each.
Big bull Rakesh Jhunjhunwala says this will be the mother of all bull markets . He expects NDA to get a majority. "We are in the initial stages of what is going to be the mother of all bull markets that India has seen. And the ground for the bull market has been raised by a lot of things, primarily by India as a country. It is going to evolve and grow. Five years of no movement in the index and a large amount of foreign money coming in to the market," he said.
However, according to Samir Arora of Helios Capital, this is just the start of a much bigger run , albeit if the elections results come in on expected lines. He says emerging market investors have been caught on the back foot and are now frantically making their way to India. On the flipside, he says, if the NDA does not manage to get a majority and a third front, backed by the Congress, which is his worst-case scenario for the market, all hell is likely to break loose. He sees a 15-20 percent drop in the market in such a case.
Meanwhile, the world's largest democratic exercise will conclude this evening. The big highlight today is the battle for Varanasi, where the BJP's Prime Ministerial Candidate Narendra Modi is locked in a fight With Aam Aadmi Party's Arvind Kejriwal and Congress candidate Ajay Rai.
Stock action
The rally was led by blue blooded heavyweights today. Banking stocks were clear favourites among investors. ITC, Reliance, ICICI Bank, Infosys and HDFC Bank were major contributors to the Sensex. Among the gainers were Coal India, Maruti Suzuki and Tata Motors. Infra, oil & gas, metals and auto stocks were on buyers' radar. However some IT stocks were under a bit of selling pressure as rupee rose to 9-month high, above 60 per USD.
The big stocks that dragged even on a record-breaking day were pharma stocks. The index ended losing 1 percent from previous close. Sun Pharma, Cipla and Hindalco were major losers in the Sensex. Among the midcaps, Torrent Power, IRB Infra, IL&FS Transport and Gujarat Pipapav.
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