Equity markets rally: Nifty, Sensex hit new high after BJP wins in three states

Market opening: The Indian equity benchmark indices have opened to a fresh record high on December 4. This after BJP emerged victorious in three states - Madhya Pradesh, Rajasthan and Chhattisgarh.

During opening the sensex was up 882.38 points or 1.31% at 68,363.57, and the Nifty was up 276.40 points or 1.36% at 20,544.30. About 2,194 shares advanced, 259 shares declined, and 119 shares unchanged. The benchmark indices continue their gaining streak in the fifth consecutive session with sensex crossing 1,000 points at 9.40 am

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In the pre-open session the sensex was up 954.15 points, or 1.41%, at 68,435 while the NSE Nifty 50 was 334.05 points or 1.65% higher at 20,601.95. The BSE Power Index is nearly 3%, lead by Adani Green Energy, Adani Power and Adani Energy. The investors have now became richer by over Rs 4.97 lakh crore

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services told Moneycontrol that the state election results could trigger renewed optimism and further rally in the market. He went on to say that from the market perspective the poll result was better than expected.

"The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. Market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better-than-expected. The market has already partly discounted a BJP victory with a 500 point rally during the last 4 sessions. But the mood is so exuberant that the rally will continue. The global backdrop also is favourable with the US 10-year bond yield declining to 4.23%. An across the board rally in stocks is in the offing", VK Vijayakumar told Moneycontrol