Nifty Surges Over 400 Points, Sensex Reclaims 80K: Top 10 Stocks to Buy Today - Read Now

Indian stock market rallies as Nifty gains 400+ points and Sensex crosses 80K, driven by BJP's Maharashtra victory and infra growth optimism. Top stocks to watch: Reliance, SBI, L&T, RVNL, and HDFC Bank. Experts suggest focus on banking, infra, and rail sectors.

By Aayushi Dubey Nov 25, 2024, 10:46 IST

The Indian stock market opened strongly in the morning session as Nifty 50 surged over 400 points, while Sensex reclaimed the 80,000 mark; focus was observed on political stability in Maharashtra and strong buying in strategic sectors like infrastructure and banks.

Market Highlights: Nifty and Sensex Surge
The Nifty 50 opened with a gap-up at 24,253 and picked up quickly to an intraday high of 24,330, logging a rally of 423 points against its previous close of 23,907. The BSE Sensex did the same, opening at 80,193 and touching an intraday high of 80,452, gaining 1,355 points in early deals.

In the banking-sensitive Nifty Bank index too, a very good rally was noticed, which opened at 52,046 and registered an intraday high of 52,232, with around 1,100 points of rally.

Reasons Behind the Rally

Market experts attribute the rally to these two reasons:

BJP-Led NDA's Victory in Maharashtra Elections: With a decisive win, political stability has come through, which boosted investor confidence and positively influenced sectors like infrastructure, real estate, and manufacturing.
Russia-Ukraine War Propelling Gains in Reliance: The Sensex heavyweight, Reliance, saw its stock share worth 2.5%, boosting the market rally.

Maharashtra Election Results and Market Sentiment

The BJP-led Mahayuti alliance's win in Maharashtra should provide that much-needed political stability, after years of coalition uncertainty. In Palka Arora Chopra, Director at Master Capital Services, says that "The election results align with BJP's pro-business policies, which bode well for infrastructure development, urban growth, and manufacturing sectors."

These outlooks should result in continuity of policy initiatives and bring higher government spending on infrastructure projects, which should help investor sentiment. Mahesh M Ojha of Hensex Securities opines, "With Maharashtra results, investors are expected to shift their strategy from defensive stocks like FMCG and pharma to aggressive sectors like railways, infra and banking."

Sectors to watch
Experts have identified some key sectors that are likely to perform well with renewed political stability and the government's focus on infrastructure development.

1. Railways
With the focus from the Government of India on completing railway projects, stocks like RVNL, IRFC, Railtel, and IRCON International are expected to gain. The growth outlook for the rail sector is strongly tied with increased government spending and private sector participation.

2. Infrastructure
Infrastructure development remains a key focus for the BJP government. Stocks like Larsen & Toubro (L&T) are top picks for long-term gains due to their strong project pipeline and leadership in the sector.

3. Banking
Banking stocks are likely to benefit as infrastructure companies seek credit lines for their projects. Public sector banks like SBI, Canara Bank, and Jammu & Kashmir Bank are positioned for growth, while private banks like ICICI Bank and HDFC Bank remain solid investment options for stability and returns.

Top 10 Stocks to Buy Today
Market analysts have recommended the following stocks for gains in the current bullish environment:

RVNL (Rail Vikas Nigam Limited): A leading rail infrastructure developer
IRFC: Indian Railway Finance Corporation mainly engaged in financing railway projects
Railtel: A leader in ICT services in the railway sector
IRCON International: Executive strength in the rail project execution segment
Larsen & Toubro (L&T): Top pick in the infrastructure segment
State Bank of India: PSU bank with the highest assets, an affordable infra credit destination.
Canara Bank: A promising PSU bank with sound fundamentals.
Jammu & Kashmir Bank: An emerging PSU bank with growth potential
ICICI Bank: A stable PSU leader with excellent growth potential
Reliance Industries: A diversified heavyweight riding the geopolitical winds

Technical Analysis: Nifty and Sensex Levels
According to Anshul Jain, Head of Research at Lakshmishree Investments, the following are some key levels to track for Nifty:

Resistance: 24,350 and 24,600.
Support: 23,800.

These levels will become crucial markers for investors to watch out for if these levels are taken out, in terms of either profit-taking or further momentum, given the rally stretched into Monday.

Political Stability and Capex Push
Maharashtra's political stability is likely to catalyze a renewed thrust in the capital expenditure going ahead. Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The focus of the government on infrastructure and railways will drive credit demand and benefit banking stocks."

The BJP's strong mandate ensures a steady continuity of pro-business policies, especially in the states where significant urbanization and development have occurred under previous BJP leadership, such as Maharashtra.

Role of Reliance in the Rally
Reliance Industries, which is a heavyweight within the Sensex, its shares up 2.5% during early trade, as it was driven by geopolitical factors and strong performance across its business segments. Reliance's movement dictates the direction of main indices largely.

Global Cues Allowing the Rally
Indian market's bullish spirit gains further support in global cues; these are all the short-term developments:

Easing political tensions: This factor improves the outlook on global trade.
Stable crude oil prices: Helps control inflation.
FII activity: Outflows have eased further, with home conditions remaining favorable.

Also Read: Markets Gap-Up on Mahayuti’s Big Win: Capex Push and Key Sectors to Watch - Read Now