As Prime Minister Narendra Modi kicked off his third term on Monday, the Indian stock market witnessed a record-setting surge.
The unprecedented boom in the Indian stock market can be attributed to the confidence investors have in the new government, as they expect stability.
As the market opened in the morning, the 50-share Nifty went up to 23,370.30 while the 30-share Sensex climbed to 76,904.35. Both the indexes gained 0.34% and 0.27%, respectively.
With the stock market opening at 9.22 a.m. (IST), 11 of the 13 major sectors traded in green, whereas high weightage financials rose 0.7% and state-owned lenders rose 1.9%.
Meanwhile, auto stocks rose by 0.8% following a statement by the dealers' association predicting stability and improved market sentiment post-election results.
Conversely, the shares of IT companies backtracked by 0.8%.
The stock market witnessed a massive surge last week when the exit polls had predicted a huge victory for the ruling National Democratic Alliance (NDA) led by the Bharatiya Janata Party (BJP).
On June 4, following the announcement of the Lok Sabha election results, the stock market experienced a decline, due to the BJP's inability to secure a comfortable majority on its own, winning just 240 seats. However, through its alliance, the saffron party was able to cross the halfway mark of 272 by securing a total of 293 seats out of the 543.