BENGALURU, Dec 4 (Reuters) - Financial and energy stocks led Indian shares to new all-time highs on Monday as key wins for the ruling party in state elections lifted the broader domestic market, already boosted by strong macroeconomic data and easing global interest rate expectations.
The NSE Nifty 50 index rose 1.78% to 20,629.25 points, notching a record high for second session in a row. The S&P BSE Sensex climbed 1.75% to an all-time high of 68,653.27, as of 2:07 p.m. IST.
Financial services rose up 2.6% and energy stocks climbed 3%, leading sectoral gains.
Index heavyweights Reliance Industries, ICICI Bank, HDFC Bank gained between 1% and 3.5%.
Small- and mid-caps gained about 1% each, also hitting new all-time highs.
India's ruling Bharatiya Janata Party (BJP) secured key victories in three of the four state assembly elections, results showed over the weekend.
"The party in Indian equity markets will go on," said Gaurav Dua, senior vice president and head of capital market strategy at Sharekhan by BNP Paribas.
"The strong macroeconomic data, favourable political outcome from state assembly elections and improving global environment has moved sentiment to risk-on from risk-off," Dua added.
Dua expects a further 5%-8% rally in the benchmark Nifty 50 between now and Lok Sabha elections in May 2024.
The Nifty had hit a record high on Friday, on the back of strong quarterly growth and monthly factory activity data.
Larsen & Toubro jumped 4% and was among the top Nifty 50 gainers after several analysts identified the company as one of their preferred picks, citing potential gains from the government's focus on infrastructure and welfare spending.
Adani group stocks advanced between 2.5% and 9% and topped gains in several sectoral indexes including metals and energy.
Eicher Motors hit a record high on robust November sales while GAIL India jumped after filing $1.82 billion claim against SEFE.
Reporting by Bharath Rajeswaran; Editing by Dhanya Ann Thoppil, Varun H K and Nivedita Bhattacharjee
Source: Reuters