Nifty 50 soars 400+ points, sensex hits 80K: Experts pick 10 Must-Buy stocks today
On Monday, the Indian stock market extended Friday’s rally, seeing significant gains in early trading. The Nifty 50 surged by up to 2%, opening at 24,253 and quickly climbing to a high of 24,330, recording an intraday rise of 423 points from Friday’s close of 23,907. Similarly, the BSE Sensex opened at 80,193 and hit an intraday high of 80,452, marking a gain of 1,355 points. The Nifty Bank index also saw strong gains, opening at 52,046 and reaching 52,232, an intraday rise of nearly 1,100 points.
Experts attribute this rally to two main factors: the BJP-led NDA’s landslide victory in Maharashtra and the impact of the Russia-Ukraine war on Reliance Industries. Reliance’s share price rose by 2.5% in early trading, helping to propel the market due to its significant weight in the Sensex.
Maharashtra Election Results
The BJP-led victory in Maharashtra is seen as a boost to political stability, which is expected to positively impact investor sentiment. Palka Arora Chopra, Director of Master Capital Services, explained that the win will likely lead to continued pro-business policies, benefiting sectors like infrastructure, urban development, and manufacturing. With a stable government in place, infrastructure projects are expected to gain momentum, benefiting construction and real estate stocks.
Reliance Share Price Rally
Mahesh M Ojha, AVP of Research at Hensex Securities, pointed out that the escalating Russia-Ukraine conflict has pushed crude oil prices higher, benefiting companies like Reliance. Reliance, with its oil and gas interests, is expected to see margin benefits, which could positively affect its upcoming earnings. Additionally, the company’s retail and telecom segments are expected to maintain an upward trajectory. Investors may want to consider Reliance shares, given its promising outlook.
Focus on Rail, Infra, and Banking Stocks
Post-election, investors are expected to shift from defensive stocks like FMCG and pharma to more aggressive sectors, such as railways, infrastructure, and banking. Avinash Gorakshkar, Head of Research at Profitmart Securities, highlighted that both the central and Maharashtra governments are focusing on infrastructure, making related stocks attractive. Companies in the rail and infra sectors could also benefit from potential credit lines from banks.
Stocks to Buy
For those looking to invest on Monday, Mahesh M Ojha recommended stocks like RVNL, IRFC, Railtel, and IRCON International in the railway sector, and Larsen & Toubro (LT) for infrastructure. For banking stocks, SBI, Canara Bank, and Jammu & Kashmir Bank were suggested, with ICICI Bank and HDFC Bank as top picks in the private sector.
