The domestic equity market gained momentum in morning trade on Tuesday after trends showed the ruling BJP was leading in Karnataka.
The BSE Sensex climbed over 400 points in morning trade, whereas NSE Nifty index reclaimed the crucial 10,900-mark.
Here are the key factors that kept bulls charged in morning trade:Vote count tallyAfter opening on a cautious note, domestic equity markets gained momentum after BJP took lead in Karnataka election results.
Counting of votes for the Karnataka elections started at 8 am today.
A high-stakes battle for Karnataka Assembly ended on Saturday evening, with over 35 million voting in an election crucial for the ruling Congress as well as the BJP and the JD-S.
BJP inched close to the majority mark of 113, is now leading on 111 seats as per data available till 10.25 am (IST).Jimeet Modi, Founder CEO, Samco Securities said, Preliminary indications suggest massive loss to Congress and corresponding gains to BJP and JDS alliance.
This is a positive surprise to the market.
These results can be presumed to be harbinger for 2019 elections which is why the market is rejoicing.
Populist measures which were earlier expected may not actually happen which would be considered good by all the international and local investors.All-round buying Robust buying in banking stocks coupled with metals, auto, oil and gas and infrastructure stocks further lifted benchmark equity indices on Tuesday.
Tata Steel, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, YES Bank, IndusInd Bank and Bajaj Auto were up between 1 per cent and 2.50 per centMore to come