Prime Minister Narendra Modi shakes hands with the new Chief Minister of Uttar Pradesh Yogi Adityanath during the swearing-in ceremony in Lucknow. Pic/AFP/PIB 

The Nifty and Sensex made new highs after the stunning performance by the Bharatiya Janata Party (BJP) in the state elections. The US Fed decision to increase interest rate from .75 per cent to 1 per cent and market participant's reaction indicates that they interpreted Federal Reserve's statement as more dovish than expected and early implementation of GST.