Stock Markets See Big Rally on Poll Predictions

Update: 2024-06-03 20:22 GMT
The Sensex gained 2,507.47 points or 3.39 per cent closing at a new high of 76,468.78 while Nifty-50 gained 733.20 point or 3.25 per cent at a new all high of 23,263.9. (Image: DC)

Mumbai: Exit poll euphoria led to a mammoth rally in the market with over 3.25 per cent gain for Sensex and NIfty-50 index surpassing earlier highs and over Rs.13.81 lakh crore total notional gain for investors. BSE’s market capitalisation rose to over Rs.425.91 lakh crore or $5.13 trillion, a record high.

However, analysts warned of market volatility on June 4 when election votes will be counted.

The Sensex gained 2,507.47 points or 3.39 per cent closing at a new high of 76,468.78 while Nifty-50 gained 733.20 point or 3.25 per cent at a new all high of 23,263.9.

As expected market saw record high opening, riding the exit poll numbers for NDA and hopeful of political stability and economic policy continuity.

“Nifty logged its best session in over three years, as investors cheered exit polls, along with better-than-expected India Q4 GDP data, positive global cues,” said analysts.

“Exit poll has activated the optimism of a win for the ongoing government. PSUs had a humongous rally, in anticipation of continuation of the reform gains, triggering further re-rating. The sustenance of broad rally is anticipated to continue on the inflows,” said Vinod Nair, head- Research, Geojit Financial Services.

The exit poll numbers attracted foreign investors who went on a buying spree with Rs.6,850.76 crore net buying along with domestic institutional investors net buying of Rs.1,913.98 crore.

In May, foreign investors were net sellers by Rs.25,586.33 crore. India’s 10 year government bond yield dropped to 6.945 per cent, which led to hefty gains in PSU bank stocks.

The market saw broad-based buying. All sectoral indices closed in green, with capital goods, PSU banks, oil and gas, power, and real estate up 5-7 per cent, only IT and healthcare under performed, said analysts.

The BSE mid-cap index gained 3.54 per cent while BSE small-cap index up 2.05 per cent. “The NIfty-50 index has crossed the barrier of previous high of 23,110 and has managed to stay above it, indicating strength; however the outcome of the general election, may cause market volatility,” said Neeraj Sharma, analyst, Asit C. Mehta Investment.

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