Benchmark stock market indices, Sensex and Nifty50, opened at record high levels on Monday after exit polls predicted a historic third term for Prime Minister Narendra Modi.
The S&P BSE Sensex jumped over 2,000 points to a record high of 76,738.89, while the NSE Nifty50 rose to 23,338.70. Both the indices hit all-time highs.
At 10:10 am, the Sensex was up 2081.29 points at 76,042.60, and the Nifty was up 646.90 points at 23,177.60.
All the stocks were in the green on the Sensex, with major gainers being Power Grid, Adani Ports, Shriram Finance, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement. These stocks were up in the range of 3% to 7%.
The Bank Nifty index jumped above the 50,000-mark for the first time. Moreover, the Nifty Smallcap 100 and the Nifty Midcap 100 index also surged nearly 3% each.
Nifty Energy, Nifty PSU Bank, and Nifty Realty were the top gainers, each rising between 4-5%.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, suggested that Dalal Street is poised for a strong start to June, "driven by optimistic exit poll results predicting a significant win for the BJP-led NDA".
"Key catalysts include India’s GDP exceeding estimates at 8.2% for FY24, a surge in Dow Jones by 574 points, increased odds of a September rate cut, early monsoon advancement, and a 10% rise in GST collections to Rs 1.73 lakh crore in May," he added.
Tapse is bullish stocks such as Adani Ports, Sulzon, Jupiter Wagon, GMR INFRA, and HDFC AMC.
The massive jump in the stock market comes after it snapped a five-day losing run on May 31, with the benchmark Sensex closing higher by 75 points.
Experts expect the market volatility seen in May to subside after the election results are announced on June 4.
This comes on the back of a 8.2% economic growth rate in 2023-24 (FY24), as per National Statistical Office (NSO) data.
The much-anticipated exit poll results for the 2024 Lok Sabha elections predicted a hat-trick for the BJP, with Prime Minister Narendra Modi likely to return to power for a historic third term.
Most pollsters said the NDA was likely to surpass its 2019 tally of 353 seats and get anywhere between 350–380 seats. The India Today-Axis My India poll predicted 361–401 seats for the NDA, and 131–166 seats for INDIA. PM Modi had set a target of 370 seats for the BJP and 400 for the NDA.
Source: India Today