Here are the key factors that kept bulls charged in morning trade:
Vote count tally
After opening on a cautious note, domestic equity markets gained momentum after BJP took lead in Karnataka election results. Counting of votes for the Karnataka elections started at 8 am today. A high-stakes battle for Karnataka Assembly ended on Saturday evening, with over 35 million voting in an election crucial for the ruling Congress as well as the BJP and the JD-S. BJP inched close to the majority mark of 113, is now leading on 111 seats as per data available till 10.25 am (IST).
Jimeet Modi, Founder & CEO, Samco Securities said, “Preliminary indications suggest massive loss to Congress and corresponding gains to BJP and JDS alliance. This is a positive surprise to the market. These results can be presumed to be harbinger for 2019 elections which is why the market is rejoicing. Populist measures which were earlier expected may not actually happen which would be considered good by all the international and local investors.”
Robust buying in banking stocks coupled with metals, auto, oil and gas and infrastructure stocks further lifted benchmark equity indices on Tuesday. Tata Steel, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, YES Bank, IndusInd Bank and Bajaj Auto were up between 1 per cent and 2.50 per cent.
Firm global cues
Wall Street closed higher on Monday, off the session highs but enough to extend last week's steady gains as the benchmark Dow recorded its eighth positive close in row. Investors were cheered by news President Donald Trump had offered China an olive branch in its trade dispute, vowing to ease the pain from US sanctions on Chinese telecoms equipment maker ZTE. The Dow Jones Industrial Average added 0.3 per cent to close at 24,899.41 while both the S&P 500 and Nasdaq gained about 0.1 percent to finish at 2,730.13 and 7,411.32, respectively.