These Indian stocks have powered the BSE Sensex index to ATH

Indian stocks are soaring, helped by the country’s economic growth. The Nifty 50 and BSE Sensex index surged to their record highs on Monday after important elections on Sunday. The Sensex index rose to a high of ₹6,9000, much higher than the year-to-date low of ₹57,090. In all, it has soared by almost 100% in the past five years.

Sensex index vs Nifty 50

India state elections

The current catalyst for the BSE Sensex index surge is the latest elections in India that have solidified President Nahendra Modi. His party, the BJP achieved majorities in three populous states in the northern parts of the country. It flipped two states from the country’s biggest opposition party.

These elections came a few months ahead of India’s national election in which Modi will contest his third term. Analysts believe that these results mean that he has a higher chance of winning in this election, thanks to his overall positive policies on the economy.

Under Modi, India has become the fastest-growing economy in the world. It has also passed the UK to become the fifth-biggest economy in the world after the United States, China, Japan, and Germany. Many of India’s companies like Reliance Industries and Adani have grown larger in his tenure.

One of Modi’s wisest decisions was to take a neutral stance on Ukraine despite pressure from the United States and other Western countries. As a result, India has enjoyed lower energy prices, thanks to cheaper imports from Russia. It has also boosted its refined oil exports around the world.

Further, Modi has attracted many foreign companies to India as dissatisfaction with China continues. Experts believe that Western companies operating in China will come under pressure when the country invades Taiwan.

Top BSE Sensex stocks in 2023

A closer look at the BSE Sensex index shows that all but four constituents have been in the green this year. National Thermal Power Corporation (NTPC), which is mostly owned by the government, has seen its stock soar by over 65% this year. This makes it the best-performing Sensex company.

Larsen & Toubro, a conglomerate involved in most areas of the Indian economy like construction, power, minerals & materials, defense, education, and heavy engineering, has risen by 58%. The company has published strong financial results recently, with its revenue reaching over ₹30,387 cror, up from the previous ₹27,323 crore. 

ITC, another Indian conglomerate in areas like FMCG, software, paperboards, and packaging, has also done well this year. Its stock soared by over 36% this year. Other top-performing Indian stocks are Dr. Reddy’s Laboratories, Titan Company, Mahindra & Mahindra, and Bharti Airtel.