Mumbai: Benchmark equity indices Sensex and Nifty surged nearly 4 per cent in early trade on Monday, reaching fresh all-time high levels after exit polls predicted a significant win for the BJP-led NDA in the upcoming Lok Sabha elections.
The 30-share BSE Sensex jumped 2,777.58 points, or 3.75 per cent, to hit a record peak of 76,738.89 in early trade. Similarly, the NSE Nifty rallied 808 points, or 3.58 per cent, to reach a fresh all-time high of 23,338.70. The exit polls released on Saturday indicated that Prime Minister Narendra Modi would secure a third consecutive term, with the BJP-led NDA expected to win a substantial majority in the Lok Sabha elections.
The counting of votes is scheduled for June 4.
All the 30-Sensex companies were trading in the green. The biggest gainers included Power Grid, NTPC, Larsen & Toubro, State Bank of India, Axis Bank, IndusInd Bank, ICICI Bank, and Mahindra & Mahindra. The surge in the markets reflects investor optimism about political stability and continued economic reforms under the Modi government.
Economic Indicators and Global Markets:
India’s economy demonstrated robust growth, expanding by 8.2 per cent in the fiscal year ending in March. This solidified India’s status as the fastest-growing major economy globally. Positive sentiments were also seen in other Asian markets, with Seoul, Tokyo, and Hong Kong showing gains, while Shanghai traded slightly lower.
US markets ended mostly higher on Friday, further boosting investor confidence. On the domestic front, Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday, as per exchange data. Meanwhile, the global oil benchmark Brent crude slightly dipped by 0.04 per cent to USD 81.08 a barrel.
Market Performance on Friday:
On the previous trading day, the BSE benchmark had climbed 75.71 points, or 0.10 per cent, to settle at 73,961.31. The Nifty had advanced 42.05 points, or 0.19 per cent, to end at 22,530.70.
Conclusion:
The remarkable surge in Sensex and Nifty, following the exit polls, underscores the market’s anticipation of a stable and business-friendly government under the BJP-led NDA. As investors await the final vote count, the prevailing sentiment indicates strong confidence in India’s economic trajectory and political stability.
