Stocks hit record high, Re up after BJP show in assembly polls

Markets today gave a thumbs up to BJP's thumping victory in the Assembly elections with key stock indices soaring to new peaks and the rupee surging to a four-month high on hopes of seeing a more business-friendly government emerging after the next Lok Sabha polls.
The S&P BSE Sensex climbed 487.21 points to an all-time high of 21,483.74 and ended with a gain of 329.89 points, or 1.57 per cent, at 21,326.42, a new closing high.
The 50-share CNX Nifty on the National Stock Exchange rose 104 points, or 1.66 per cent, to a record 6,363.90, after touching an intra-day peak of 6,415.25.

Both indices surpassed their previous closing highs on November 3 while Nifty also scaled its intra-day peak of 6,357.10 clocked on January 8, 2008.
Across markets, five out of every 10 stocks rose and this pushed up investor wealth by Rs 75,000 crore today. Capital goods and bank stocks were in the limelight.
In the forex market, the Indian rupee today rallied to a nearly four-month high of 60.84 versus the US dollar and closed at 61.13, logging a 28 paise gain over Friday.

Financial markets were in an uptrend in the past few sessions after exit polls predicted the BJP would do well.

"...We believe wins in Delhi and Rajasthan will be interpreted as a boost for BJP's prospects by financial markets and are likely to give the party additional momentum as general election campaigning starts to ramp up," said financial major Nomura in a report.
Ahead of the Lok Sabha polls, BJP yesterday handed a 4-0 drubbing to the Congress in state elections, snatching Rajasthan and retaining Madhya Pradesh with landslide wins, holding on to power in Chhattisgarh and falling just short of a majority in Delhi.
The state assembly polls are viewed by many as a preview of the general elections, which are due early next year.

A Bank of America Merrill Lynch report said the assembly poll results will place BJP as the "front runner" in the general elections. However, it added that while the recent results will reinforce the current opinion polls that show BJP as the "leading party," it may not be enough to justify a "further increase" in the BJP tally.