Mumbai: The impressive victory registered by the BJP in the Lok Sabha polls drove investors crazy on Monday, and saw the Sensex hitting the 25,000 level for the first time.
Soaring as much as 6.14 per cent or 1,470.03 points in the intra-day trade, the Sensex hit an all time high of 25,375.63 as a better than expected show by the BJP triggered hectic buying in banking, capital goods and realty sector stocks.
However, profit booking in the latter half of the trading session led to markets paring most of their intra-day gains and the Sensex ended at 24,121, gaining just 216.14 points or 0.90 per cent. Similarly, the Nifty hit an all time high of 7,557.60 points before closing at 7,203, up by 79.85 points or 1.12 per cent.
With the prospects of a stable and decisive government becoming a reality, both domestic as well as overseas brokerages have raised their Sensex targets.
While revising upwards its year end Sensex target to 28,000, Deutsche Bank said that the Indian equity markets are at the cusp of a structural bull market.
“The mood is really upbeat in the market. The kind of majority BJP received in the polls has given a clear message to the markets that the new government won’t succumb to pressures from its allies and the decision making process would be much faster,” said Deven Choksey, the managing director, K.R.Choksey Securities.
As results started trickling in, overseas inves-tors pumped in a record Rs 3,634.82 crore into the domestic equity markets, which took the rupee to an 11- month high against the US dollar. The partially convertible rupee closed the day at 58.79 per dollar after hitting an intra-day high of 58.62 per dollar. “Markets are expected to rally higher on Monday as lot of overseas investors who stayed on the sidelines would be looking to invest,” said Arun Kejriwal, director, Kejriwal Research and Investment Service.
