After falling flat on the day of election results, the stock market seems to be trading in the green on Wednesday. The Sensex showed a rise of up to 600 points in early trading. On the other hand, Nifty once again succeeded in crossing the level of 22000. However, even on Wednesday morning, selling was seen in the market from upper levels. At 9:39 am, the Sensex was seen trading at 72,267.95 with a gain of 188.90 (0.26%) points. Nifty rose 46.05 (0.21%) points to reach the level of 21,930.55.
Due to increased buying at lower levels, the Bombay Stock Exchange witnessed brisk trading in early trade on Wednesday. The 30-share Sensex of Bombay Stock Exchange jumped 948.83 points to reach 73,027.88 points in early trade. National Stock Exchange's Nifty also reached 22,131.60 points with a gain of 247.1 points.
The NDA is above the majority mark of 272 in the 543-member Lok Sabha while the BJP has fallen short of the magic majority mark for the first time since 2014 and is critically dependent on its allies to form the government. The Election Commission has declared the results of all 543 Lok Sabha seats, in which the BJP has won 240 seats and the Congress has won 99 seats.
A report by Motilal Oswal Research said that despite the small majority in the election result, we expect the policy agenda of Modi 3.0 (investment-centric growth, capital expenditure, infrastructure creation, manufacturing etc.) to continue. We can also expect populist measures to address resentment in rural areas and help the marginalized. Among the 30 Sensex companies, shares of Hindustan Unilever, Nestle, Asian Paints, HCL Technologies, HDFC Bank, Kotak Mahindra Bank and ITC were the biggest gainers. Shares of Larsen & Toubro, Power Grid, NTPC and State Bank of India declined.
The Bombay Stock Exchange Sensex on Tuesday closed at a more than two-month low of 72,079.05, down 4,389.73 points or 5.74 per cent. The Sensex fell by 6,234.35 points or 8.15 per cent to a near five-month low of 70,234.43 in intraday trade. National Stock Exchange's Nifty also fell by 1,982.45 points or 8.52 percent to 21,281.45 points. It finally closed at 21,884.50, down 1,379.40 points or 5.93 percent.