Sensex continues rally; Nifty hits high

Mumbai: The equity markets continued their winning streak for the third consecutive day led by huge gains in the automobile stocks that helped Nifty to close at a new high of 10,463.20, gaining 0.72 per cent or 74.45 points.

The 30-share BSE Sensex gained 235.06 points or 0.70 per cent to end the day at 33,836.74.

Market participants attributed the rally to the positive sentiments created on account of the poll verdict remaining in favour of the ruling BJP.

However, it was the small- and mid-cap stocks that stole the lime light on Tuesday outperforming their large-cap peers by a huge margin with several stocks gaining in the range of 10-20 per cent.

The broader participation from small and mid cap stocks led to 1,908 stocks traded on the BSE advancing higher as against 778 stocks that declined. Both the BSE small-cap and mid-cap index also hit their respective lifetime high on Tuesday.

“So many mid-cap counters soared during the session; but, clearly the ‘Automobile’ giant, ‘Maruti Suzuki’ had an eye-popping rally of more than five per cent and now, the stock is at a kissing distance of the magical five digit figure of '10,000,” noted Sameet Chavan, derivative analyst at Angel Broking.

The shares of Maruti soared 5.33 per cent to end the day at '9,804.50 while Hero Motocorp, Tata Motors and Bajaj Auto gained 4.70 per cent, 3.39 per cent and 2.87 per cent respectively.

According to Edelweiss, market sentiments would turn more sensitive to election trends as compared to economic and corporate earnings trend going forward.  

“The electoral cycle will gather pace in 2018 as 8 states will head for polls between now and General Elections 2019. That and the closer-than-expected results raise the likelihood of less conservative fiscal approach, greater emphasis on rural and agri-sectors. The markets will become more sensitive to the election journey relative to the economic and earnings trends, which we believe should be increasingly positive hereon,” Edelweiss said.