Happy Days are back, Sensex @ 40,000, Nifty @ 12,000

Markets soar in anticipation of a Narendra Modi led government in the center. The BSE Sensex scaled 40,054.42, up by 944.21 point or 2.41 per cent, while Nifty50 was at 12,031.95, up by 294.05 points or 2.51 per cent.

Among the top contributors to the Sensex gains were Reliance contributing 161.29 points, ICICIBANK contributing 136.83 points, HDFC 114.57 points, LT 112.77 points and SBI 84.20 points.

Market is extremely bullish as BJP crosses halfway mark in leading trends. As per latest data available with the Election Commission NDA is leading in 309 seats, UPA in 84 seats, BSP and allies in 8 seats, whereas Others are leading in 131 seats

Sectorally, all the indices on the NSE were trading with impressive gains. The Nifty PSU index advanced the most, closely followed by private banks.

The markets are expected to sustain the rally if the verdict of the elections is along expected lines. The market sentiment is such that the experts foresee an upside of 10 per cent over the course of the next 10 months.

The bullish sentiments revolve around the following sectors, namely – private banks, textiles, chemicals, specific NBFCs, capital goods, construction and infrastructure.

Investors should closely monitor these sectors and identify good investment opportunities within the same.