Gujarat election results loom large on the market

The start to the fresh week is likely to be positive, tailing supportive global cues. The SGX Nifty is trading with gains of 36 points at 10,398, demonstrating a positive opening at the opening bell. Today, the focus will be on the actual results of the Gujarat elections.  

Equity markets in Asia are trading broadly higher at the start of the week after the US indices closed at record highs on Friday.  Japan’s Nikkei 225 has surged 263 points, Hong Kong’s Hang Seng has gained 163 points and China’s Shanghai Composite has added 13 points. 

Back home, markets extended gains for the second straight session and closed the last trading session of the week on a firm note. The exit polls predicting a clear victory for the BJP in the assembly elections for Gujarat and Himachal Pradesh lifted investors' sentiments. The broader indices outperformed the benchmark indices as Nifty Mid-Cap and Small Cap index rose 1.02% and 1.09%, respectively. Sector-wise, barring Nifty PSU Bank, all other sectors ended in positive territory. Nifty Metal emerged as the leader, gaining over 2.5%. At the end of the day, Nifty surged 81 points to settle at 10,333 and BSE Sensex rose 216 points to end at 33,463.  

Last Friday turned to be a fabulous session for the US stocks as all the main benchmark indices closed at record highs. The strength on the Wall Street came as traders expressed optimism about Republican lawmakers passing tax reform legislation. The Dow Jones Industrial Average advanced 140 points to close at 24,648, the Nasdaq jumped 80 points to finish at 6,936 and the S&P 500 rose 23 points to end at 2,675.   

The European markets remained lacklustre and ended the session on a mixed note. The DAX of Germany climbed 0.27%, FTSE 100 of the U.K. rose 0.57%, while CAC 40 of France shed 0.15%.