Benchmark indices ended on closing high on Tuesday as BJP’s wins in key state elections continued to boost sentiment, with auto stocks leading the gains, while strength across Asian markets also lent support.
Blue chips benefited after PM Narendra Modi’s Bharatiya Janata Party sealed victories in his home state of Gujarat and Himachal Pradesh, raising hopes of continued reforms.
Auto stocks contributed the most to the indexes’ gains, with NSE Auto index climbing as much as 3.4% to a record high.
Focus will now shifts to macros and earnings recovery now that the aseembly elections in Gujarat and Himachal Pradesh are out of the way.
On Monday, Sensex tanked 867 points (2.6%) on opening as early trends showed Rahul Gandhi-led Congress ahead of the ruling Bharatiya Janata Party (BJP) in Gujarat — a state it has governed for 22 years. The 30-share index, however, settled the day 138 points higher.