New Delhi: Benchmark stock indices erased the downturn it witnessed after a reduced mandate for BJP-led NDA on the day of the Lok Sabha election result, with Sensex hitting an all-time high on Friday.

IT and bank stocks were in the highlights

The S&P BSE Sensex surged by over 1,600 points, reaching an all-time high of 76,795.31, while NSE Nifty50 also gained 2.07% to 23,294.2.

The rally in the stock market was due to RBI’s upward revision of its GDP growth forecast for FY25 to 7.2%, up from the previous estimate of 7%. RBI maintained interest rates for the 8th consecutive time at 6.5%.

“Rotational buying across key sectors, including IT and FMCG, which had previously been on the sidelines, has bolstered the upward movement. Therefore, we recommend maintaining a “buy on dips” strategy as long as the Nifty holds above the 22,600 level,” said Mishra.

Stocks in sectors sensitive to interest rates, such as banking, finance, automotive, and real estate, jumped by as much as 8% after the RBI announced it would keep the interest rate steady.

The total market capitalisation of all companies listed on the BSE increased by Rs 7.68 lakh crore, reaching Rs 423.57 lakh crore.

IT and bank stocks were in the highlights, with the tech sector leading the gains.

Wipro rose by over 5%, Infosys by 3%, and Tech Mahindra, TCS, and HCL Tech each saw gains between 2-3%.

Other major gainers in the Sensex included Bajaj Finance, Ultratech Cement, and Tata Steel. Reliance played a key role in the rally, contributing 192 points to the Sensex.

In the real estate sector, shares surged up to 8% following the RBI’s decision. Sunteck Realty and Soba both increased by 8%, while Brigade, Lodha, and Mahindra Lifespace saw rises between 2-5%.

Nifty Bank stocks also saw significant gains, rising up to 3%. Bandhan Bank, Federal Bank, AU Small Finance Bank, Axis Bank, ICICI Bank, and Bank of Baroda each experienced increases.