(Mint)
(Mint)

Market gains as Election Commission sets poll dates

  • Banking stocks were trading higher after ArcelorMittal won NCLT approval to take over Essar Steel
  • Investors will also await key consumer price inflation data on Tuesday

The Indian market surged over 0.8% on Monday after the Election Commission announced national polls and said the final outcome of the poll will be unveiled on 23 May.

At 10.15am, the 30-share Sensex gained 0.85% or 309.90 points to 36,981.33 points, while the National Stock Exchange’s 50-share Nifty rose 0.84% or 92.35 points to 11,127.75 points. Since the start of the March, Sensex and Nifty have advanced 3.2% each.

According to a TimesNow opinion poll, the BJP-led National Democratic Alliance at the Centre may fall 20 seats short of the halfway mark of 272 in the 543-seat Lok Sabha. The prime minister is battling a slide in popularity over rising concerns about the lack of job creation and rural distress, but analysts said India’s decision to target terrorist camps in Pakistan could help the ruling party.

"With a mixed result in the recent parliamentary by-polls and state legislature elections, risks of a hung parliament cannot be discounted. Four recent opinion polls point to an average of 220-230 seats for the BJP-led coalition, falling short of a majority. The UPA is expected to fare better than in 2014, but ‘Others’ will tellingly enjoy stronger bargaining power", said Radhika Rao in a 14 February report.

Investors will also await key consumer price inflation data on Tuesday. The CPI probably quickened to 2.4%, year on year, last month from 2.05% in January, according to a Bloomberg survey of economists.

Banking stocks were trading higher after ArcelorMittal won NCLT approval to take over Essar Steel. IDBI Bank rose 3.2%, Bank of Baroda 2.7%, Federal Bank 2.6%, State Bank of India 2.4%, Axis Bank 1.5%, Union Bank of India 1.6%, Punjab National Bank 1.3%, ICICI Bank 1.2%, Yes Bank 0.6%.

Jet Airways India Ltd rose 3% after Mint reported that the company has secured fresh credit facilities of 2,050 crore from state-run Punjab National Bank (PNB) that could provide a temporary lifeline to the cash-strapped airline. The Mumbai-based airline has raised foreign currency term loans worth 1,100 crore and a non-fund based credit facility of 950 crore from PNB.

(Bloomberg contributed to this story)

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