Mumbai. After the exit polls, the BSE Sensex jumped by more than 2,500 points to its highest level ever due to widespread buying in the local stock market on Monday. The National Stock Exchange’s Nifty also closed at a new peak with a jump of 733 points. This rise in the market has come after the exit polls on Saturday predicted a big victory for the BJP-led National Democratic Alliance (NDA) government.
The 30-share BSE Sensex jumped 2,507.47 points or 3.39 percent to close at a record 76,468.78 points. This is the biggest single-day gain in the last three years. During trading, the index at one point rose 2,777.58 points to a record 76,738.89 points.
The National Stock Exchange’s Nifty also jumped 733.20 points or 3.25 percent to close at its highest level of 23,263.90 points. During trading, it rose 808 points or 3.58 percent to reach a record 23,338.70 points. This is the biggest one-day rise in Sensex and Nifty after February 1, 2021. At that time, after the presentation of the budget, both the indices had strengthened by about five percent.
It is interesting that even after the ‘exit poll’ on May 20, 2019, the Sensex and Nifty had strengthened by more than three percent. That ‘exit poll’ had also predicted a big victory for the BJP-led NDA government in the general elections. Both the benchmark indices closed at record highs due to strong gains in major stocks like Reliance Industries, ICICI Bank, HDFC Bank and State Bank of India. With the rise in the stock market, the shares of Adani Group companies continued to rise strongly on Monday. Adani Power rose by about 16 percent.
Sector wise, shares of public sector undertakings, power companies, oil, energy, capital goods and realty companies rose up to 8 percent. According to the exit polls released on Saturday, Prime Minister Narendra Modi may hold power for the third consecutive time. The BJP led NDA government is expected to win the Lok Sabha elections with a huge majority. Counting of votes will take place on June 4.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, “This was the best session for Nifty in three years. Investors are excited by the exit polls as well as the better economic growth rate data for the fourth quarter.” Paras Matalia, Head of Fund Management and Equity Research at Samco Mutual Fund, said, “The market opened at a new high today. The main reason for this is the exit polls, which say that the BJP-led NDA will return to power. The NDA government winning more seats means that there will be continuity at the policy level.” Out of the 30 Sensex stocks, NTPC, State Bank of India and Power Grid rose by more than nine percent.
Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank and Tata Steel were the major gainers.
On the other hand, Sun Pharma, HCL Technologies, Asian Paints, Nestle and Infosys shares ended in losses. Vinod Nair, Head of Research, Geojit Financial Services said, “The exit polls have predicted a memorable victory for the current government. Along with this, public sector undertakings witnessed a strong rally due to the expectation of continuation of the pace of reforms…” Nair said that the rise that has taken place on a broad scale is expected to continue in the future as well. The reason for this is the increase in capital inflows, which had been keeping away from the market for the last three months.
The BSE Midcap index representing shares of medium-sized companies rose 3.54 percent while the Smallcap index representing shares of small companies rose 2.05 percent. Both the indexes reached new peaks during trading. The market capitalization of companies listed on the BSE jumped to Rs 4,25,91,511.54 crore. The market capitalization of companies listed on the NSE stood at Rs 422.28 lakh crore.
According to official data released on Friday, the country’s economic growth rate increased to 8.2 percent in the financial year 2023-24. With this, India retained its position as the world’s fastest growing major economy. In other Asian markets, South Korea’s Kospi, Japan’s Nikkei and Hong Kong’s Hang Seng were in profit while China’s Shanghai Composite was in loss.
Major markets in Europe were in gains in early trade. US markets closed with gains on Friday. According to stock market data, foreign institutional investors bought shares worth Rs 1,613.24 crore on Friday. Global oil benchmark Brent crude rose 0.18 percent to $81.26 per barrel.