After opening the day higher, Indian benchmark indices remained positive as the session progressed and ended the day on a firm footing.Benchmark equity indices, the BSE Sensex and NSE Nifty50, ended the first trading session of the week on a higher note, rising over 1% each. Markets drew encouragement from the massive victory of the Bharatiya Janata Party (BJP)-led coalition in the Maharashtra Assembly elections, as well as the strength in global markets.At the closing bell, the BSE Sensex stood higher by 993 points (up 1.3%).Meanwhile, the NSE Nifty closed higher by 315 points (up 1.3%).ONGC, SBI, and BPCL are among the top gainers today.Infosys, Tech Mahindra, and Infosys on the other hand, were among the top losers today.The GIFT Nifty was trading at 24,312 up by 270 points at the time of writing.The BSE MidCap index ended 1.6% higher andthe BSE SmallCap index ended 1.9% higher.Sectoral indices were trading positive with stocks in the oil & gas sector, capital goods sector, and banking sector witnessing most buying speer.Coforge, Gillette India, and HCL Technologies hit their respective 52-week highs today.The rupee is trading at 84.29 against the US$.Gold prices for the latest contract on MCX are trading 1.3% lower at Rs 76,636 per 10 grams.Meanwhile, silver prices were trading 1.6% lower at Rs 89,301 per 1 kg.Here are the three key factors that drive the market’s momentum.#1 BJP’s WinThe domestic markets witnessed a short covering rally following assembly election results on November 23.Buying was seen across the board after the BJP pulled off a stunning performance in Maharashtra winning a record number of seats to propel the party-led ruling Mahayuti alliance to a landslide victory. In Maharashtra, home to India’s financial capital Mumbai, NDA won 233 of 288 seats in the recently-concluded election.#2 MSCI RejigThe quarterly reshuffle in the Morgan Stanley Capital International (MSCI) indices is scheduled for November 25. Following the changes, the MSCI Standard/EM Index for India will see the addition of five stocks, with no exclusions, taking the total count to 156 stocks.In the Smallcap Index, a net inclusion of 13 stocks has been announced, increasing India’s representation to 525 stocks in this category. The adjustments are part of MSCI’s routine review to reflect market dynamics and company performances.#3 PSU Stocks RallyShares of public sector undertakings (PSUs) surged on Monday, with several counters gaining up to 8%, as the BJP-led alliance secured a significant victory in the Maharashtra elections.Among the top gainers were Indian Railway Finance Corporation (IRFC), Bharat Electronics Ltd (BEL), Rail Vikas Nigam Ltd (RVNL), Bharat Dynamics Ltd, NBCC (India) Ltd, and GAIL.
IndiGo, Japan Airlines Commence Codeshare PactIn news from the airline sector, IndiGo and Japan Airlines have introduced new connectivity options for travellers between India and Japan as they launch their codeshare partnership, starting 16 December, with reservation and sale of tickets available from 4 December.Both airlines had in June entered into a codeshare arrangement which would help the Japanese carrier expand services to destinations of IndiGo’s network.The partnership enables JAL to expand its connectivity to India initially, while offering IndiGo flyers more travel options on JAL’s domestic and international network, in later phases.JAL will start codesharing on domestic routes within India that connect to JAL-operated flights to and from Delhi and Bengaluru. This collaboration will provide customers with enhanced travel options and encourage cultural and business exchanges between Japan and India.At present, JAL operates daily services between Tokyo and New Delhi, and five times weekly services between Tokyo and Bengaluru. The new partnership with IndiGo enables JAL to establish a ‘comprehensive network’ across India, connecting to several major cities via JAL-operated flights.
HUDCO Jumps 8%. Here’s WhyMoving on to news from the finance sector, shares of Housing & Urban Development Corporation (HUDCO) jumped over 8% on 25 November, the most in 7 weeks after BJP-led Mahayuti’s alliance sweeping win in Maharashtra state elections brought renewed focus on Centre’s capital expenditure (capex) plans.After the government spending stayed flat YoY in the first half of this fiscal year, analysts expect the poll result to improve gradually in the second half, a positive to infrastructure development and realty stocks.All PSU stocks tied to the incumbent government – be it defence, railways, or realty – all did well on the back of the emphatic victory of the BJP-led alliance in Maharashtra.Against this backdrop, investors lapped up realty shares, sending Nifty Realty index up over 2% on 25 November’s upbeat market. As a result, DLF, Macrotech Developers, and Godrej Properties also increased up to 3%.
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