The Indian stock market witnessed a significant rally on Monday, with key indices surging by up to 2% during the early trading hours. The Nifty 50 climbed 423 points to touch an intraday high of 24,330, while the BSE Sensex reclaimed the 80,000 mark, registering a substantial rise of 1,355 points. The Nifty Bank index also contributed with an intraday rally of approximately 1,100 points.

Market experts attribute this positive momentum to two key factors: the BJP-led NDA’s landslide victory in the Maharashtra Assembly Elections and the impact of the Russia-Ukraine war on Reliance Industries' share price.

Key Highlights of Market Movement:

• Nifty 50: Opened at 24,253; touched an intraday high of 24,330.
• Sensex: Opened at 80,193; peaked at 80,452 during early trading.
• Nifty Bank: Opened at 52,046; reached a high of 52,232.

Reasons for the Market Rally

1. Maharashtra Election Results

The BJP-led NDA's decisive victory in the Maharashtra Assembly Elections has infused investor confidence. Palka Arora Chopra, Director of Master Capital Services, highlighted the potential for political stability, which aligns with pro-business policies.

• Impact on sectors: Infrastructure, urban development, and manufacturing are expected to benefit due to the government's focus on these areas.
• Investor sentiment: A clear mandate is likely to accelerate infrastructure projects, boosting stocks in the construction and real estate sectors.

2. Reliance Share Price Rally

Reliance Industries, a heavyweight in the Sensex, saw its stock price rise by 2.50% during early trading.

• Geopolitical impact: The ongoing Russia-Ukraine conflict has caused crude oil prices to soar, benefiting Reliance and other oil companies.
• Business outlook: Reliance's retail and telecom divisions continue to perform well, solidifying investor confidence in its growth potential.

Expert Recommendations:

Sectors to Watch:

• Railways and Infrastructure: Favorable government policies are expected to drive growth in these segments.
• Banking: Both public and private sector banks are likely to gain due to increased credit demand from infrastructure companies.

Stocks to Buy Today:

1. Railway Stocks: RVNL, IRFC, Railtel, IRCON International.
2. Infrastructure: Larsen & Toubro (LT).
3. Banking:
   • Public sector: SBI, Canara Bank, Jammu & Kashmir Bank.
   • Private sector: ICICI Bank, HDFC Bank.

Expert Insights:

• Avinash Gorakshkar, Head of Research at Profitmart Securities:

  • The momentum from the Maharashtra Election Results signals stability and continuity in pro-growth policies, benefiting railway, infrastructure, and banking stocks.

• Mahesh M Ojha, AVP — Research at Hensex Securities:

  • Reliance’s buffer stock and robust business segments make it a strong pick for both short- and long-term investment horizons.

Conclusion:

The market's strong performance reflects optimism driven by political stability and strategic business developments. Investors are advised to focus on railway, infrastructure, and banking sectors for sustained returns, with Reliance Industries remaining a key player to watch.