Guwahati: Indian shares surged on Wednesday after key allies pledged their support to Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) for a new government.
Following reports of Modi’s resignation to pave the way for a third term, the BSE Sensex soared over 3.2% to close at 74,382.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
The Nifty 50 also jumped over 3.3%, closing above 22,600.
Also Read: Assam: Jailed Khalistani leader Amritpal Singh wins LS polls from jail, wife pays visit
Analysts attribute this rally to positive sentiment surrounding a stable government.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
The report comes after a narrow election victory for the BJP-led alliance.
Several major companies witnessed significant gains, with IndusInd Bank, M&M, Tata Steel, and Axis Bank leading the pack.
Notably, all 30 companies in the Sensex index rose, except for Larsen & Toubro.
Also Read: Assam: Has Congress heavyweight Rakibul Hussain ended Badruddin Ajmal’s political career?
Enthusiasm extended beyond the top companies, with broader markets like the BSE MidCap and SmallCap indices rising over 4% and 2.9%, respectively. Additionally, the India VIX, a volatility gauge, dropped by 29%, indicating a calmer market.
The rally was particularly strong in sectors like metals and private banking, with both Nifty indices in these sectors surging over 5%.
The Nifty Bank and Auto indices also saw significant gains of over 4% each.