Indian shares rise as ruling party's Maharashtra election win boosts sentiment
Updates with mid-morning moves, adds analyst's comments
By Bharath Rajeswaran
Nov 25 (Reuters) -Indian shares advanced on Monday after logging their best session since early June on Friday, as theruling alliance's victory in the Maharashtra state election over the weekend boosted sentiment.
The NSE Nifty 50 .NSEI rose 1.7%to 24,314.75 points, as of 10:28 a.m. IST, while the BSE Sensex .BSESN gained 1.59%to 80,378.6.
Both the benchmarks had risen about1.5% on Friday as well.
"The move on Friday can be attributed to short-covering ahead of the Maharashtraassembly election result," said Abhishek Goenka, founder and chief executive of IFA Global.
In Maharashtra, home to India's financial capital Mumbai, the Bharatiya Janata Party-led National Democratic Alliance (NDA) won 233 of 288 seats in the recently-concluded election. The state has seen multiple regime changes over the last five years after an unclear mandate in 2019.
"Given the emphatic nature of the ruling NDA's victory, markets will rise further, as the political instability in one of the most industrialised and economically important states comes to an end," Goenka added.
All 13 major sectors logged gains, with state-owned banks .NIFTYPSU gaining 4.5%. The broader, more domestically focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose about 2% each.
Reliance Industries RELI.NS, the second heaviest-weighed stock on the Nifty 50, gained about 3% after Citi upgraded it to "buy" from "neutral" citing a favourable risk-reward situation after a period of significant underperformance.
All Adani group stocks, barring NDTV NDTV.NS, rose on the day.
The conglomerate lost about $28 billion in the previous two sessions as investors cut their exposure to the group in the wake ofallegations of bribery and fraud by U.S. authorities.
Adani group 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 on BSESensex from Dec. 23 as part of periodic reconstitution of indexes.
Mahindra and Mahindra MAHM.NS gained 3% after Jefferies termed it the top pick in the autosector and a better investment case than Maruti Suzuki MRTI.NS as the former offers twice the growth at similar valuations.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Sumana Nandy
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