Indian markets closed at record highs on Friday, a day after the Narendra Modi-led Bharatiya Janata Party returned to power at the Centre with a clear majority.
The Sensex shot up 623.33 points to close at 39,435.72, and the National Stock Exchange Nifty rose 187.05 points to end at a lifetime high of 11,844.10.
“The markets are rallying on hopes that after BJP improved on its 2014’s tally of 282 seats will deliver on structural economic reforms, increase spending on infrastructure and announce another recapitalisation plan for state-run banks,” AK Prabhakar, head of research at IDBI Capital Markets told NDTV.
Banking stocks led gains, as ICICI Bank was the best performer on the Sensex, followed by Larsen & Toubro, Bharti Airtel, Vedanta and Tata Motors. Only four stocks – National Thermal Power Corporation, HCL Technologies, Tata Consultancy Services and Hindustan Unilever – declined on the 31-share index.
ICICI Bank was the biggest gainer on the Nifty too, followed by Larsen & Toubro, Zee Entertainment, JSW Steel and Bharti Airtel. Only six stocks declined – Tech Mahindra, National Thermal Power Corporation, Tata Consultancy Services, Hindustan Unilever, HCL Technologies and Titan Company. .
The Indian rupee rose 49 paise against the United States dollar on Friday, to finish at 69.52.