The Indian stock market surged in early trading on Monday, with the Nifty 50 soaring more than 400 points and the Sensex climbing back to 80,000. Experts suggest that railway, infra, and banking stocks could be the focus for investors in the near term.
The Nifty 50 index opened with an upside gap at 24,253 and quickly hit an intraday high of 24,330, recording a rise of 423 points from Friday’s close. Meanwhile, the Sensex surged by over 1,300 points, opening at 80,193 and reaching a high of 80,452. Experts attribute this rally to two key factors: the BJP-led NDA’s victory in Maharashtra’s state elections and the ongoing Russia-Ukraine war, which is benefiting oil-related stocks like Reliance.
Maharashtra Election Results Boost Investor Sentiment
The recent landslide victory of the BJP-led NDA alliance in Maharashtra has created a positive ripple effect in the stock market. Political stability is a key factor driving investor optimism, and with the clear mandate, investors are now looking forward to continuity in pro-business policies.
Palka Arora Chopra, Director of Master Capital Services, pointed out that the Maharashtra result could give a significant boost to the stock market. “The stability in Maharashtra could trigger a rally in the stock market, boosting investor confidence due to the continuity of pro-business policies,” she said. Sectors such as infrastructure, urban development, and manufacturing are expected to benefit, particularly as the government is likely to push ahead with major infrastructure projects. This could result in strong gains for companies in the construction, real estate, and related industries.
In addition, Chopra noted that the clear mandate from the Maharashtra elections has calmed the market, which had been uncertain in the lead-up to the vote. With a stable government in place, the momentum is now shifting toward more aggressive investments in sectors tied to the government’s infrastructure plans.
Reliance Share Price Surge Linked to Oil Prices and Geopolitical Tensions
Another major driver of the stock market rally has been the surge in Reliance Industries’ share price. Analysts believe that the company stands to benefit from rising crude oil prices, which have been fueled by the ongoing Russia-Ukraine war.
Mahesh M Ojha, AVP — Research at Hensex Securities, explained that geopolitical tensions are pushing crude oil prices higher. This, in turn, benefits companies like Reliance, which have significant oil-related business interests. He added that the market is pricing in short-term benefits from this price hike, with investors expecting Reliance to report strong earnings in the upcoming quarters.
Ojha emphasized that those with surplus funds should consider adding Reliance shares to their portfolios. “Reliance’s retail and telecom businesses are expected to sustain their uptrend as well, making it a promising stock for various time horizons,” he said.
As a major component of the Sensex, Reliance’s price movements have a significant impact on the overall index. The recent gains in Reliance are expected to continue as long as crude oil prices remain elevated, providing a cushion for the stock’s future performance.
Shifting Investment Focus: Railway, Infra, and Banking Stocks on the Radar
With the political landscape settled in Maharashtra, investors are shifting their focus from defensive stocks in sectors like FMCG and pharma to more aggressive bets, including rail, infrastructure, and banking stocks.
Avinash Gorakshkar, Head of Research at Profitmart Securities, believes that the infrastructure sector will attract significant attention in the coming months. “The government’s focus on rail and infra projects, both at the national and state levels, could lead to strong gains in these sectors,” Gorakshkar said. As infrastructure companies secure credit lines from banks, the banking sector is also expected to see increased buying interest.
Experts are recommending several stocks in these sectors for investors looking for long-term growth opportunities. Among the key picks are companies like RVNL, IRFC, Railtel, and IRCON International in the railway space. These stocks are expected to benefit from increased government spending on infrastructure projects. For infrastructure-focused investors, Larsen & Toubro (LT) is a strong contender for the medium to long term.
Meanwhile, in the banking sector, public-sector giants like SBI, Canara Bank, and Jammu & Kashmir Bank are drawing attention. Private banks such as ICICI Bank and HDFC Bank are also on investors’ radars, as they continue to perform well despite broader market volatility.
Stocks to Buy Today: Expert Recommendations
For those looking to take advantage of the current market rally, experts have highlighted several stocks to consider.
- Railway Stocks: RVNL, IRFC, Railtel, IRCON International
- Infrastructure Stocks: Larsen & Toubro (LT)
- Banking Stocks: SBI, Canara Bank, Jammu & Kashmir Bank, ICICI Bank, HDFC Bank
With the positive market momentum driven by political stability and oil price surges, these stocks offer solid potential for both short-term and long-term investors. The key is to monitor the developments closely, especially in the wake of the Maharashtra election results and the ongoing global geopolitical tensions.
By focusing on these sectors, investors can position themselves to take advantage of the market’s current strengths while mitigating risks tied to broader market fluctuations.
