Sensex Up 600 Points after Congress won in MP, Rajasthan and Chhattisgarh

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The benchmark Bombay Stock Exchange Sensex rose over 600 points on the late afternoon session of the trade on Wednesday after Indian National Congress won assembly elections 2018 by 3-0 in Hindi Heartland States – Madhya Pradesh, Rajasthan, and Chhatisgarh.

“With the crude oil prices under control and no hike in interest rates, the corporates are expected to post good results. The investors are now shifting their focus from elections,” said Astha Jain, a senior analyst at Hem Securities.

The benchmark Brent Crude traded at $60.95 per barrel while the domestic currency weakened to Rs 72 to a US dollar from its previous close of 71.85. At 3.01 p.m., the Sensex traded at 35,751.04 points, higher by 601.03 or 1.71 percent from the previous close. It has touched an intra-day high of 35,771.90 and a low of 35,167.47 so far.

The Nifty50 traded at 10,732.60 points, higher by 183.45 or 1.74 percent from the previous close.

“The positivity is surprising but there is a possibility that the markets are comfortable from the fact that either the Congress or BJP will be dominant during the general elections,” Rusmik Oza, Head-Fundamental Research, Kotak Securities, told IANS.

“The economy has always grown better with a majority or a coalition by governments by Congress or BJP”

According to analysts, the markets ignored the sudden resignation of Urjit Patel of RBI Governor, perhaps because it might lead to a more liberal monetary policy with the appointment of Shaktikanta Das as the new Reserve Bank of India Governor.

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