With the BJP winning in Madhya Pradesh, Rajasthan and Chhattisgarh, Indian markets soared more than 1 per cent to strike life-time peaks on Monday. This has reportedly made investors richer by about Rs 5 lakh crore.
Clear majority recorded by the country's ruling party in three Hindi heartland states resulted in positive sentiments in the markets. This was backed by strong macroeconomic numbers and unabated foreign fund inflows.
BSE Sensex climbed 877.43 points, or 1.30 per cent, to a new peak of 68,358.62 in early trade. The market capitalisation of companies listed in BSE rose by Rs 4.97 lakh crore to Rs 342.64 lakh crore from Rs 337.67 lakh crore on Friday.
Adani Enterprises and Adani Ports led the Sensex firms with the maximum gains of 6.79 per cent and 4.52 per cent, respectively. SBI, ICICI Bank, Bharti Airtel, NTPC and Larsen & Toubro were the other top gainers.
In the broader market, the BSE midcap gauge jumped 1.03 per cent and smallcap index climbed 1.09 per cent, reported PTI
Last Wednesday, the combined market valuation of all BSE-listed firms touched $4 trillion for the first time ever. On Friday, the market capitalisation of NSE firms also crossed $4 trillion for the first time ever.
"The BJP's resounding victory in three of the four major state elections will further strengthen the market's bullish sentiment. The BJP significantly outperformed pre-poll and exit-poll expectations, which will further strengthen the prospects of the BJP retaining its majority in the Lok Sabha and the market's conviction of the BJP winning the 2024 general elections," PTI cited a research note released by Kotak Institutional Equities.
"We expect election-linked market volatility to remain low, which may result in the market trading at rich valuations in the near term," it added.
-- with inputs from PTI