Nifty 50 jumps over 400 points, Sensex regains 80K. Experts recommend buying these 10 stocks today

Fair today: Extending the pullback rally from Friday into Monday, the Indian stock market witnessed decent purchases during early morning deals. Frontline indices rose up to 2 percent at the opening bell. The Handy 50 The index opened with an upside gap at 24,253 and reached an intraday high of 24,330 within a few minutes of the opening bell, registering an intraday rally of 423 points from Friday’s close of 23,907.

The BSE Sensex today opened up at 80,193 and touched an intraday high of 80,452 in early morning deals, registering an intraday rise of 1,355 points. Similarly, the Nifty Bank index opened higher at 52,046 and touched an intraday high of 52,232 at the opening bell, marking an intraday rally of around 1,100 points.

According to stock market experts, this rally can be attributed to two fundamental reasons: the landslide victory of the BJP-led NDA in the Maharashtra election results and the war between Russia and Ukraine that is boosting Reliance’s share price today. In the early morning session, the share price of Reliance, which owns one-sixth of Sensex shares, rose by around 2.50 per cent.

Maharashtra Election Results

Highlighting the reason for the rise of the Indian stock market after the landslide victory of the BJP-led NDA in the Maharashtra Assembly ElectionsPalka Arora Chopra, director of Master Capital Services, said, “In Maharashtra, the BJP-led Mahayuti alliance will form the government. This election result is expected to bring political stability in Maharashtra and have a positive impact on investor sentiment, especially in infrastructure. urban development and manufacturing sectors in line with BJP policies.”

“The stability in Maharashtra could trigger a rally in the stock market, boosting investor confidence on the back of continuity of pro-business policies, especially after the uncertainty following previous coalition changes. Moreover, with a clear mandate, the government is likely to move forward with infrastructure projects, a key focus of the BJP, which would benefit the construction, real estate and allied sectors,” Palka Arora added.

Reliance share price rally

Mahesh M Ojha, AVP – Research at Hensex Securities, pointing out the rally in the Sensex heavyweight stock prices, said: “Due to the escalation in the war between Russia and Ukraine, crude oil prices are skyrocketing and the trend is expected to continue until there is some relief from geopolitical tension. So, Reliance and other oil producers are expected to reap margin benefits on their buffer stocks, which is expected to boost their numbers for the coming quarter. So, the market is expected to offer a discount on this short-term benefit, which will trickle down into Reliance’s stock price. Apart from this, the company’s retail and telecom businesses are expected to continue their upward trend. So, Friday’s rally in Reliance’s stock price needs to be viewed from this angle. Those with a surplus of cash could consider looking at Reliance stock as the stock looks promising across all time horizons.”

On how Maharashtra election results relate to the Indian stock market, Mahesh M Ojha of Hensex Securities said, “After the Lok Sabha election results, investors in the Indian stock market went defensive and started looking at FMCG and pharmaceutical stocks. However, after the Maharashtra Assembly election results, they could start looking at railway, infrastructure and banking stocks, changing their investment strategy from defensive to aggressive.”

Railway, infrastructure and banking shares in focus

Avinash Gorakshkar, head of research at Profitmart Securities, said: “The election results in Maharashtra have shown that the momentum is still with the incumbent government (both in New Delhi and Maharashtra). So, it is expected that investors will look at the rail and infrastructure segment as the Government of India (GoI) and the Maharashtra State Government have placed a special focus on these segments. As infrastructure companies would apply for credit lines from banks, bank stocks may also see some buying interest when the market opens on Monday.”

Stocks to buy today

When Mahesh M Ojha of Hensex Securities was asked about the stocks to buy on Monday after the election results in Maharashtra, he said, “In the railway segment, one can look at RVNL, IRFC, Railtel and IRCON International. In the infrastructure segment, Larsen & Turbo ( LT) can be a good choice for the medium to long term. Similarly, in the medium to long term, investors can look at the stocks of SBI, Canara Bank and Jammu & Kashmir Bank in the banking sector can look at the stocks of SBI. ICICI Bank and HDFC Bank when looking at the private bank share.”

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We recommend that investors consult certified experts before making any investment decisions.