Carrying forward the pullback rally from Friday to the next day, or Monday in this case, the Indian stock market saw fairly good buying during the early part of the trading session. The frontline indices rose up to 2 per cent in the opening bell. The futures opened higher with Nifty spiking within the first 15 minutes to an intraday high of 24,330 from the opening bell at 24,253, thereby posting an intraday gain of 423 points above the weekly closing of 23,907.

The BSE Sensex began trading today higher at 80,193 and reached its intra-day high at 80,452 during the early trading breaking an intra-day gain of 1,355 points. Similarly, the Nifty Bank index also opened with a premium at 52,046 and went up to 52,232 during the Opening Bell which made its intraday up move of over 1,100 points.

According to stock market experts, this rally can be attributed to two basic reasons: The results of the Maharashtra Election highlighting the BJP-led NDA’s victory and the Russia-Ukraine war contributing to the increase of Reliance’s share price today. Reliance Industries which contributes to about one-sixth of Sensex’s muscle strength saw its share price jump about 2.50 per cent during the early morning session.

Maharashtra Election Results

Making it pertinent that the Indian stock market ‘opened on a higher note from the BJP-led NDA in the Maharashtra Assembly Election this time,’ the Director of Master Capital Services, Palka Arora Chopra said, ‘Maharashtra has proven Maharashtra BJP-led Mahayuti alliance to form the government.’ The latest Maharashtra Election Result should yield political stability this is likely to have a favourable impact on India’s investor mood, particularly among infrastructure, urbanization and the manufacturing industries in line with BJP principles.

The stability in Maharashtra could easily set off an up movement in the stock market due to an assurance of continuity of pro-business policies especially when there is the prospect of a change of coalition governments. In addition, this clear mandate shall mean that continues with politically favoured infrastructure, a policy agenda close to the BJP’s heart that will benefit Construction, Real Estate and associated industries,” stated Palka Arora.

Reliance share price rally

Referring the spike in Sensex heavyweight Reliance share price, Mahesh M Ojha, heads — Research, Hensex Securities, said, “Russia Ukraine tensions are aggravated, causing crude oil prices to soar further, or stabilize until geopolitical tensions subside.” Thus, margin benefits on the buffer stocks are anticipated to yield rich rewards for Reliance and other oil-maker companies to lock in their next quarter figures. Thus, the market should provide a discount to this short-term benefit that will seep into Reliance’s share price. Besides, it means that the company’s retail and telecom business will continue to be on the rise only in the long term. Thus, Friday’s run-up in Reliance’s share price must be viewed transpired from this perspective. For those having extra bucks lying around, it might feel like considering Reliance share since the stock is promising across all horizons.

Speaking on how Maharashtra Election results are linked to the Indian stock market, Mahesh M Ojha of Hensex Securities said ‘After the Lok Sabha Election Results, Indian stock market investors went defensive and started focusing on FMCG and pharma companies. But they may shift focus on railway, infra and banking stocks from being defensive to aggressive after the Maharashtra assembly election results.

Rail, infra and banking stocks to gain turbo charge

‘The Maharashtra Election Results have clearly indicated that the mantle still remains with the ruling government (at New Delhi as well as in Maharashtra,’ concurs with Avinash Gorakshkar, Head of Research, Profitmart Securities. Therefore, investors are supposed to have a closer look at the rail and infra segment since GoI and the Maharashtra State Government have declared their interest in these segments. In the same way that infra sector companies would go for credit lines from the banks banking stocks may also have some buying interest when the market opens on Monday.

Stocks to buy today

When asked for the scrips to buy on Monday after the Maharashtra Election Result, Mahesh M Ojha of Hensex Securities advised ‘In railway space one can look at RVNL, IRFC, Railtel and IRCON International. For the medium to long term, Larsen & Turbo (LT) in the infrastructure segment provides buying opportunities. Similarly, for the medium and long-term investors, there are SBI, Canara Bank and Jammu & Kashmir Bank in the banking sector. If they look at the private bank share one can look at ICICI Bank and HDFC Bank Shares.

(Disclaimer: The opinions and suggestions expressed above are not those of Waytoinfo; rather, they are those of specific analysts or broking firms. We recommend that before making any financial decisions, investors consult with qualified professionals.)