Why is Indian stock market rising after TDP leader Chandrababu Naidu’s statement?
Stock market today: After a tepid opening on Wednesday, the Indian stock market witnessed strong buying that pulled frontline indices up to 2%
Trend reversal on Dalal Street?
Once the TDP leader cleared the rumours regarding his move after the BJP failed to get the magic figure in the Lok Sabha Election result, bulls came strongly and started bottom fishing at lower levels. The Nifty 50 index touched an intraday peak of 22,445, which recorded an intraday rise of over 2 percent. Today, the BSE Sensex made an intraday high of 73,851 and registered around a 1.90 percent rise against Tuesday’s close of 72,079. The Bank Nifty index touched an intraday high of 48,000 within a few minutes of the TDP leader’s statement.
Speaking on the reason for the rise in the Indian stock market after the TDP leader’s statement, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The Lok Sabha Election results were below market estimates as it was expecting a strong BJP-led government for the third time. However, the BJP failed to get an absolute majority in around 20 odd seats. This triggered rumours about TDP and other alliance partners’ role in the post-result scenario.”
Gorakshkar said that such rumours about the government put doubt in the investors’ minds, which was cleared after the TDP leader’s statement.
Advising traders and investors to trade cautiously in this rebound, Sumeet Bagadia, Executive Director at Choice Broking, said, “The Nifty 50 index has breached the immediate hurdle placed at 22,100 to ₹22,200 mark, but this should not be taken as a trend reversal on Dalal Street. We need to wait for some more time, as the market may become bullish once the 50-stock index breaches its crucial hurdle of 22,500 on a closing basis.”
What TDP leader said?
Speaking to the media after the historic third straight term being given by the Indian voters to the BJP-led NDA government in New Delhi, TDP leader N Chandrababu Naidu said that he is firmly with the NDA. He said that Andhra Pradesh voters have given a verdict for a better Andhra, and both TDP and BJP would work together to match the expectations of the voters.