Domestic stock markets registered strong gains in the truncated week ended Friday, 17 March 2017, on the back of thumping victory for the Bharatiya Janata Party (BJP) in the Uttar Pradesh assembly elections. The barometer index, the S&P BSE Sensex, surged 702.76 points or 2.42% to settle at 29,648.99. The Nifty 50 index jumped 225.50 points or 2.52% to settle at 9,160.05. The market was closed on Monday, 13 March 2017 for holi.
The ruling party at the centre, the BJP, had put up a decent show in remaining three states polls viz. Uttarakhand, Manipur and Goa while it succumbed to Congress party in Punjab.The election results could provide a much needed boost to BJP to accelerate the pace of reforms, including the roll out of the crucial Goods and Services Tax (GST), slated to be implemented from 1 July 2017.
Among global news, US Federal Reserve raised interest rates as expected without accelerating its timeline for future tightening. The Fed raised its benchmark lending rate a quarter point and continued to project two more increases this year. Fed said that it would raise the benchmark federal-funds rate to a range between 0.75% and 1%.
On Nifty weekly chart strong resistance is seen at 9180. If it breaks with high volume, more bullishness is expected.