Sensex, Nifty rise to record as BJP sweeps three state polls

The benchmark Sensex and the broader Nifty surged to record levels today after the BJP's victory in three state assembly elections sparked optimism about the main opposition party's chances in general elections next year.
The S&P BSE Sensex climbed 487.21 points to an all-time high of 21,483.74 and ended with a gain of 329.89 points, or 1.57 per cent, at 21,326.42, a new closing high.
The 50-share CNX Nifty on the National Stock Exchange rose 104 points, or 1.66 per cent, to 6,363.90, after touching an intra-day peak of 6,415.25. Both indices surpassed their previous highs on November 3.
The rupee also climbed to an almost four-month high of 60.90 against the dollar as local stocks strengthened.

Capital goods and bank stocks led 12 of the 13 BSE sectoral indices higher.
ICICI Bank and Larsen & Toubro were the biggest contributors to the gains on the Sensex. Sesa Sterlite and ONGC were among the 26 of the 30 index shares that moved up.

The Bharatiya Janata Party raced to wins in Rajasthan, Madhya Pradesh and Chhattisgarh and was just short of a majority in Delhi, according to election results announced yesterday. While the BJP retained Madhya Pradesh and Chhattisgarh, the Congress party, which heads the ruling coalition at the Centre, lost in Delhi and Rajasthan.
The Sensex had surged 249 points on December 5 after exit polls showed leads for the BJP.

"The state assembly elections are viewed by many as a preview of the general elections, which are due by May 2014. However, we would caution that state election outcomes are not always a reliable indicator of general election prospects," Nomura said in a note today.
Analysts have earlier said sentiment could be affected once the US Federal Reserve starts tapering its stimulus programme as the world's largest economy recovers, reducing liquidity available for investing in emerging markets.
Foreign institutional investment in the Indian stock market has crossed Rs 1 lakh crore so far this year, or USD 18 billion, according to Sebi data. They bought a net Rs 863.77 crore of shares on Friday.