Sensex rises for second day as BJP holds the aces in Assam
The benchmark BSE Sensex rallied over 167 points to 25,820.45 and the NSE Nifty regained the 7,900-mark in cautious trade on Tuesday amid firm global cues.business Updated: May 17, 2016 18:19 IST
Equities jumped for a second straight session as the BSE Sensex rose 120 points to 25,773.61 after investors raised their exposure following exit polls that showed BJP coming to power in Assam for the first time.
A higher closing in other Asian markets and a firm opening in Europe after crude oil prices pushed towards US $50 a barrel added to the positive sentiment.
Broader markets too joined the bull run as BSE small-cap and mid-cap indices ended 0.19 per cent and 0.13 per cent higher, respectively.
Shares of Sun TV zoomed 9.76% to Rs 431.65 after exit polls gave DMK-Congress alliance a comfortable majority in the Tamil Nadu Assembly. Owner of Sun TV, Kalanithi Maran is considered to be close to top DMK leaders.
Exit polls at the end of polling in Assam, West Bengal, Tamil Nadu, Kerala and Union Territory of Puducherry showed BJP winning Assam elections for the first time.
“Polls also suggest an improvement in BJP’s seat tally in West Bengal and Kerala, which is likely to enhance the central government’s ability to push through legislative reforms,” said Shreyash Devalkar Fund Manager – Equities at BNP Paribas Mutual Fund.
However, profit-taking towards the fag-end trimmed most of the session’s gains.
The benchmark BSE Sensex resumed higher at 25,756.14, but succumbed on profit-booking at improved levels and slipped to a low of 25,733.76 before ending 120.38 points or 0.47% higher at 25,773.61.
The NSE Nifty after re-testing the crucial 7,900-mark to hit a high of 7,940.10, finally settled 30 points or 0.38 per cent higher at 7,890.75.
Stocks of state-run oil companies such as BPCL, HPCL and Oil India turned buyers fancy and rose by up to 3.66 per cent following a hike in prices of petrol and diesel.
Overseas, Europe edged up on rally in commodity stocks as key indices in France, Germany and the UK rose by 0.21% to 0.67%.
From Asia, Hong Kong, Japan, Singapore, South Korea and Taiwan firmed up by up to 1.65% while China-based shares slipped by 0.2%.