Mumbai: Benchmark stock indices have recovered from the downturn experienced after the BJP-led NDA received a reduced mandate on the day of the Lok Sabha election results, with the Sensex reaching an all-time high on Friday. The S&P BSE Sensex surged over 1,600 points, hitting a record high of 76,795.31, while the NSE Nifty50 climbed by 2.07% to reach 23,294.2.

This stock market rally was driven by the Reserve Bank of India's (RBI) upward revision of its GDP growth forecast for FY25 to 7.2%, up from the previous estimate of 7%. Additionally, the RBI maintained interest rates at 6.5% for the eighth consecutive time. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that the markets extended their gains for the third consecutive session, rising by 2% in line with the ongoing positive trend. "Following a flat start, the Nifty gradually climbed, nearing its record high. Most sectors contributed to the rise, with IT, auto, and energy leading the gains. The broader indices also aligned with this trend, increasing by 1.4% to 2.3%," Mishra said.

He further mentioned that the markets have nearly reclaimed their record highs and appear poised to maintain this momentum. "Rotational buying across key sectors, including IT and FMCG, which had previously been on the sidelines, has bolstered the upward movement. Therefore, we recommend maintaining a 'buy on dips' strategy as long as the Nifty holds above the 22,600 level," Mishra added. Stocks in sectors sensitive to interest rates, such as banking, finance, automotive, and real estate, saw jumps of up to 8% after the RBI's announcement to keep interest rates steady.

The total market capitalisation of all companies listed on the BSE increased by Rs 7.68 lakh crore, reaching Rs 423.57 lakh crore. IT and bank stocks were particularly notable, with the tech sector leading the gains. Wipro rose by over 5%, Infosys by 3%, and Tech Mahindra, TCS, and HCL Tech each saw gains between 2-3%. Other major gainers in the Sensex included Bajaj Finance, Ultratech Cement, and Tata Steel. Reliance played a key role in the rally, contributing 192 points to the Sensex.

In the real estate sector, shares surged up to 8% following the RBI's decision. Sunteck Realty and Sobha both increased by 8%, while Brigade, Lodha, and Mahindra Lifespace saw rises between 2-5%. Nifty Bank stocks also experienced significant gains, rising up to 3%. Bandhan Bank, Federal Bank, AU Small Finance Bank, Axis Bank, ICICI Bank, and Bank of Baroda each saw increases between 1-3%. Additionally, shares of Bajaj Finance, SBI Card, Bajaj Finserv, and IDFC rose between 1-3.5%. Nifty Auto stocks also climbed by up to 2.5%, with Mahindra and Mahindra surging by 5.38%.

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