The Indian equity market witnessed a remarkable turnaround on Wednesday, with new-age tech stocks leading the rally as the National Democratic Alliance (NDA) emerged victorious in the recent elections, securing another term under Prime Minister Narendra Modi’s leadership.
Market Resurgence: A Recap
After a significant downturn on Tuesday, where the ruling Bharatiya Janata Party (BJP) fell short of the majority mark projected by exit polls, Wednesday brought a wave of optimism. Sensex, which plummeted by 5.74% on Tuesday, surged by 3.2% to 74,382.24, and Nifty50 rose by 3.4% to 22,620.35.
Tech Stocks Regain Momentum
New-age tech stocks rebounded vigorously on Wednesday, reclaiming lost ground from the previous day’s slump. Notable gains were observed across the board, with 20 out of the 23 listed new-age tech startups experiencing positive momentum.
Mamaearth, a standout performer, surged by an impressive 10.5%, reversing its previous day’s decline. Nazara Technologies, Zomato, Delhivery, and Nykaa also witnessed significant gains, underscoring renewed investor confidence in the sector.
Mixed Performance
Despite the overall uptrend, some stocks continued to face downward pressure. Paytm and NSE SME-listed Yudiz registered declines, reflecting ongoing market volatility. However, the broader market sentiment remained bullish, driven by positive political developments and anticipation of a healthy monsoon.
Market Outlook: Focus on Fundamentals
Looking ahead, market analysts anticipate a shift in focus towards fundamental factors, with the government’s policy agenda and the Reserve Bank of India’s monetary policy decisions coming under scrutiny. Expectations are high for continued government focus on investment-led growth, infrastructure development, and manufacturing initiatives.
Conclusion
The market’s swift rebound following the election results underscores its resilience and adaptability in the face of uncertainty. As attention shifts from political dynamics to economic fundamentals, investors remain optimistic about the growth prospects of new-age tech stocks and the broader equity market. With key developments on the horizon, including the RBI’s monetary policy announcement, market participants are closely monitoring the evolving landscape for potential opportunities and challenges.
