Markets Surge as Narendra Modi Sworn in for Third Term as Prime Minister
The markets were buzzing with excitement on Monday as Narendra Modi was sworn in as prime minister for the third consecutive term. The key index S&P BSE Sensex surpassed the 77,000-mark for the first time ever, signaling a strong start to the trading day.
Both the Nifty 50 and Sensex hit record highs during the day, reaching 23,411.90 and 77,079.04 points, respectively. This surge in the market was seen as a vote of confidence in the ongoing economic reforms and policy stability under Modi’s leadership.
Despite the BJP’s reduced majority in the recent Lok Sabha election, investor confidence quickly bounced back, with key allies reaffirming their support for the party. The market rallied 10% from its low point in early June, indicating a strong rebound in sentiment.
As the market refocuses on fundamentals, experts predict an upward bias to continue, with a focus on consumer staples, rural demand-driven stocks, and domestic cyclicals. However, volatility may persist until the Budget announcement, with concerns about potential changes to capital gains tax.
Looking ahead, investors are keeping an eye on key cabinet portfolios, the upcoming Budget, monsoon progress, interest rate movements, and potential policy changes. Despite some nervousness about coalition governments, the focus remains on growth-oriented policies and investments in key sectors like automotive, financial services, infrastructure, renewable energy, and export-oriented industries.
Overall, the markets are optimistic about the future under Modi’s leadership, with a focus on driving economic growth and attracting investments. As the government sets its agenda for the coming term, investors are hopeful for continued stability and progress in key sectors.
