Why stock market rose minutes after Chandrababu Naidu's statement?
Chandrababu Naidu expressed his party's support and commitment to the NDA following Lok Sabha Election results.
Stock market today: The Indian stock market rose after TDP leader N Chandrababu Naidu expressed his party's support and commitment to the NDA following Lok Sabha Election results. The TDP leader said that his party “is firmly with the NDA" contradicting claims that he was unsure about his support for the PM Narendra Modi's BJP which failed to get the magic figure in the Lok Sabha Election results.
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He asserted, “I am experienced and I have seen several political changes in this country. We are in NDA, I’m going to the NDA meeting."
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Following this, Nifty 50 index touched an intraday peak of 22,445- an intraday rise of over 2 percent. BSE Sensex reached an intraday high of 73,851 and registered around a 1.90 percent rise against Tuesday's close.
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Bank Nifty index also touched an intraday high of 48,000 within a few minutes of the TDP leader's statement.
Sumeet Bagadia, executive director at Choice Broking, said, “The Nifty 50 index has breached the immediate hurdle placed at 22,100 to 22,200 mark, but this should not be taken as a trend reversal on Dalal Street. We need to wait for some more time, as the market may become bullish once the 50-stock index breaches its crucial hurdle of 22,500 on a closing basis."
