Indian shares open higher, boosted by ruling party's victory in Maharashtra
Updates for market open
By Bharath Rajeswaran
Nov 25 (Reuters) -Indian shares opened higher on Monday after logging their best session since early June on Friday, with the ruling party alliance'svictory in the Maharashtra state election boosting investor sentiment.
The NSE Nifty 50 .NSEI rose 1.68% to 24,306.7 points, as of 9:28 a.m. IST, while the BSE Sensex .BSESN gained 1.59% to 80,380.72.
Both the benchmarks rose about 1.5% on Friday as well.
"A significant feature of the Friday rally was the sharp spurts in many large-caps, which clearly indicates short-covering," said VK Vijayakumar, chief investment strategist at Geojit Financial Services
"This sharp upswing will continue today, assisted by the huge victory of the ruling National Democratic Alliance (NDA) in Maharashtra, which is highly positive for the market," Vijayakumar said.
The win in Maharashtra, which houses India's financial capital Mumbai, will end the chronic instability in one of the most industrialised and economically important states in the country, said two analysts.
All 13 major sectors logged gains. The broader, more domestically focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose about 2% each.
Reliance Industries RELI.NS, the second heaviest-weighed stock in the Nifty 50, gained 2.5% after Citi upgraded it to "buy" from "neutral" citing a favourable risk-reward situation after a period of significant underperformance.
All the Adani group stocks, barring NDTV NDTV.NS, rose at the open. The conglomerate lost about $28 billion in the previous two sessions as investors cut their exposure to the Indian conglomerate in the wake of bribery and fraud allegations from U.S. authorities.
Adani group has denied the allegations, calling them "baseless".
Online food delivery platform Zomato ZOMT.NS climbed 6% after it was selected to replace steel maker JSW Steel JSTL.NS in BSE Sensex as part of periodic reconstitution of indexes from Dec. 23.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman
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