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In 2 days after clear mandate for Modi, market wealth grows by Rs 3.86 trn

The Sensex had hit its all-time high of 40,124.96 during the trade on May 23, the day election results were announced

Press Trust of India  |  New Delhi 

The brokerage said that domestic flows may not be enough to protect India from any global sell-off, especially in large-caps. It added that analysts' estimates of a sharp earnings bounce-back doesn't give a true picture of growth concerns
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Investors' wealth has gone up by Rs 3.86 trillion in two days of market rise where the has gained 872 points after a decisive mandate for the Narendra modi-led Bharatiya Janata Party (BJP) in the general elections.

The 30-share key index has gained 871.9 points in two days. The on Monday closed 248.57 points higher at 39,683.29.

Led by the rally in the equity market, the (m-cap) of BSE-listed companies rose by Rs 3,86,220.41 crore to Rs 1,54,11,395.90 crore.

At the close of trade on Thursday, the market valuation of BSE-listed firms had been Rs 1,50,25,175.49 crore.

The had hit its all-time high of 40,124.96 during the trade on May 23, the day election results were announced.

Hemang Jani, Head (Advisory), Sharekhan by BNP Paribas said, "Indian end the day on a positive note. The continue their upward trend supported by FII (foreign institutional investor) buying in the past two consecutive trading days. The current government wining the general elections by a two-thirds of majority will clam the political environment in the country."

He said slowdown in global growth, US-China trade war along with rise in oil prices pose an immediate threat to domestic markets

"However, post the elections, we now expect the market to revert to fundamental issues such as earnings growth," Jani added.

From the 30-share pack, 17 scrips gained led by Tata Steel, YES Bank, NTPC, Larsen and Toubro, Axis Bank and State Bank of India.

Among sectoral indices, the capital goods, power, industrials, utilities, metal and realty indices rallied up to 3.06 per cent.

In the broader market, the S&P Midcap index gained 1.13 per cent and BSE Smallcap 1.77 per cent.

On the BSE, 1,793 scrips advanced, while 785 declined and 188 remained unchanged.

First Published: Mon, May 27 2019. 17:30 IST