Investors gain Rs 12 lakh crore as stock markets shrug off poll jitters [Video]

The Indian indices shrugged off election jitters and massively rebounded in a sharp rally on Wednesday, as the BJP-led National Democratic Alliance (NDA) prepared to stake fresh claims for government formation.

The investors gained Rs 12 lakh crore in a single session — after losing nearly Rs 30 lakh crore on Tuesday amid political uncertainty — as banks, automobile, and FMCG stocks led the gains in Nifty.

The Sensex closed 2,303 points, or 3.2 per cent, up at 74,382, while the Nifty zoomed 735 points, or 3.36 per cent, to close at 22,620 on Wednesday.

Bank Nifty went up 2,126 points, or 4.53 per cent, to close at 49,054.

Experts said that in the current market scenario, investors should remain cautious about investing in momentum stocks or smallcap stocks which have remained overheated for the past two years.

“Any sustained period of sideways or downward movement in momentum stocks can trigger a sell-off in …