Mumbai: Benchmark Stock Indices Sensex and Nifty Reach Lifetime Highs Following Exit Poll Predictions
Mumbai: Benchmark stock indices Sensex and Nifty surged over 3% to close at record highs on Monday, driven by broad-based buying as exit polls forecast a significant victory for the BJP-led NDA in the general elections.
The 30-share BSE Sensex soared by 2,507.47 points or 3.39% to a new closing peak of 76,468.78, marking its largest single-day gain in three years. During the day, the index jumped 2,777.58 points or 3.75% to reach a record intra-day high of 76,738.89.
The NSE Nifty climbed 733.20 points or 3.25% to finish at 23,263.90. Throughout the day, it surged 808 points or 3.58% to hit a fresh intra-day all-time high of 23,338.70.
A sharp rally in blue-chip stocks such as Reliance Industries, ICICI Bank, HDFC Bank, and State Bank of India propelled the indices to these lifetime highs. Positive GDP data also contributed to the buoyancy in the equity markets.
Shares of all Adani Group companies continued their sharp rally on Monday, with Adani Power surging nearly 16%, in line with the overall market surge.
Among sectors, PSUs, Power, Utilities, Oil, Energy, Capital Goods, and Realty indices soared up to 8%.
Exit polls on Saturday predicted that Prime Minister Narendra Modi will secure a third consecutive term, with the BJP-led NDA expected to win a substantial majority in the Lok Sabha elections. Vote counting will take place on June 4.
“The markets opened at new highs today largely because of exit polls predicting a landslide victory for the BJP-led NDA. This will result in a positive surprise of policy continuity with higher seats for the NDA government,” said Paras Matalia, Fund Manager & Head of Equity Research at SAMCO Mutual Fund.
Among the 30-Sensex companies, NTPC, State Bank of India, and Power Grid jumped over 9% each. Other notable gainers included Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank, and Tata Steel.
In contrast, Sun Pharma, HCL Technologies, Asian Paints, Nestle, and Infosys were among the laggards.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The exit poll has activated the optimism of a significant win for the current government. PSUs had a substantial rally in anticipation of the continuation of reform gains, triggering further re-rates.”
India’s economy grew by 8.2% in the fiscal year that ended in March, solidifying its position as the fastest-growing major economy in the world.
In Asian markets, Seoul, Tokyo, and Hong Kong closed with gains, while Shanghai ended lower. European markets were trading positively. US markets ended mostly higher on Friday.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,613.24 crore on Friday, according to exchange data.
Global oil benchmark Brent crude climbed 0.18% to USD 81.26 a barrel.
On Friday, the BSE benchmark rose 75.71 points or 0.10% to close at 73,961.31, while the Nifty advanced 42.05 points or 0.19% to end at 22,530.70.
