The stock markets opened the week strong on Monday with investors turning euphoric after the Mahayuti’s big win in the Maharashtra assembly election and appeared to discount the chances of any major fallout over the bribery scandal that engulfed the Adani group in the US.
In the morning, Sensex surged over 1300 points but the gains were cut in the afternoon and it ended up 992.74 points or 1.25 per cent at the end of the day. On the NSE, the broader Nifty rose 314.65 points or 1.32 per cent to 24221.90.
Shares of five Adani group firms ended lower on Monday, with Adani Green Energy tumbling 8 per cent.
In the broader market, investors had partly priced in the possibility of a win for the BJP alliance in Maharashtra on Friday when the Sensex jumped 1355.97 points. The rally on Monday signalled the victory margin was beyond their expectations.
Analysts said stocks were available at reasonable valuations after the recent bout of correction, while foreign portfolio investors (FPIs) were slowing down their selling pace.
From the 30-share Sensex pack, Larsen & Toubro was the biggest gainer.