Well, one thing is certain that there were no Monday blues on D-Street. Both Sensex, and Nifty recorded their highest level in 2019. The S&P BSE Sensex closed above 37000 for the first time since September 19, 2018, while Nifty50 reclaimed 11,100 levels for the first time since September 21.
Anecdotal data suggests that except for 2009, the market has always rallied in the next session of all Lok Sabha poll date announcements since 1999, CNBC-TV18 data showed.
Lok Sabha elections will begin on April 11 and polling would be held over seven phases till May 19, followed by counting of all votes on May 23, the Election Commission announced the dates over the weekend.
Almost all the sectoral indices participated in the rally and the broader indices too showed noticeable buying. The S&P BSE Mid-cap index rose 1.96 percent while the small-cap index gained 1.6 percent in trade today massively outperforming benchmark indices.
The final tally – the S&P BSE Sensex rallied 382 points to close at 37,054 while the Nifty50 ended at 11,168, up 132 points.
But, the next big question is what should investors do now? Should you stay put, or wait for corrections before initiating fresh longs?
Well, experts feel that fresh longs should be avoided but every dip should be used as a buying opportunity. The investment horizon should be of more than 12 months.
“If investors are holding positions for long they could book profits. If the investment horizon is 12-18 months, then every dip is a buying opportunity because we are quite bullish for the next 1 year hence booking profits might not be advisable,” Ritesh Ashar – Chief Strategy Officer – KIFS Trade Capital told Moneycontrol.
“My advise is to stay away from creating fresh longs but every dip should be considered as a buying opportunity with an investment horizon of 12-18 months,” he said.
Indian market shrugged off weak global cues after commentary from various government sources suggested that the govt will be able to meet its fiscal deficit target of 3.4 percent for the current fiscal, despite a likely shortfall in indirect tax collection.
“The statements from various government bodies on meeting the fiscal deficit target in this fiscal and plans for inviting fresh FDI in various sectors boded well for the market sentiment,” Jayant Manglik, President – Retail Distribution, Religare Broking Ltd told Moneycontrol.
“It shrugged-off weak global cues in early trades and opened with strong gains. It gradually inched higher afterward and closed around the day’s high,” he said.
Stocks in news:
Shares of Godfrey Phillips India rose nearly 10 percent after the company clarified on the news report about violation of the Foreign Direct Investment (FDI) laws by the company.
NBCC (India) shares rallied 3 percent after the company has secured new works from Raipur SMART City Limited (RSCL) for various infrastructure projects.
Bharti Airtel’s share price jumped over 8 percent on March 11 after promoter entity Bharti Telecom said it will renounce post-rights stake in favour of GIC, bringing down total promoter holding in Bharti Airtel by 4 percent to 63 percent.
Shares of Dilip Buildcon rose 6.7 percent after the company declared as the lowest bidder for the project in the state of Maharashtra.
European markets are trading higher on Monday as traders looked ahead to a crucial vote in the UK which will determine whether the country’s Brexit deal will be approved.
Asian markets ended mixed as investors remained cautious over a possible global economic slowdown. Shanghai Composite gained 1.92 percent to end at 3,026.99, Nikkei was up 0.47 percent at 21,125.09.
The Kospi ended flat at 2,138.10, while Hang Seng index was up 0.93 percent to close at 28503.30.