Benchmark equity indices soared nearly 4% early Monday, reaching new all-time highs, as bullish sentiment swept D-Street after Saturday’s exit poll results.
MUMBAI: India’s stock markets soared to Nifty hit record high on Monday as exit polls suggested a third term for Prime Minister Modi‘s NDA. Benchmark indices Sensex and Nifty opened at unprecedented levels, jumping nearly 4% in early trade, with bullish sentiment dominating D-Street after Saturday’s exit poll results.
The BSE Sensex opened 2,621.98 points, or 3.55%, higher at 76,583.29, while the NSE Nifty 50 opened at 23,337.90, up 807.20 points, or 3.58%. Following this record opening, the market saw some profit booking.
Nifty Hit Record High Amidst Market Rally
Amidst a market rally, the Nifty index reached a record high, reflecting investor optimism.
In the broader market, the Nifty Smallcap 100 and Nifty Midcap 100 index also rallied nearly 3% each. Sector-wise, all indices were trading with gains of 1-4%, with Nifty PSU Bank, Nifty Oil & Gas, and Nifty Auto leading the rally.
Among the stocks, all 30 constituents of Sensex were trading in the green. Powergrid, NTPC, L&T, M&M, and SBI were up 5-8% each.
“Fundamentals, technicals, and sentiments aligning favorably simultaneously is rare in the market. This is what has happened now. The market entered the big event, the elections, very light, with the Nifty correcting around 600 points from the May highs. Profit booking also occurred on a large scale. The short position in the market is also high,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“All these are going to change dramatically. DIIs, HNIs, retail…all are going to turn buyers. Short-covering can add to the momentum. The rally is likely to be led by large caps. Stocks like RIL, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L&T, M&M, Tata Motors, Bajaj Auto, and Eicher Motors are fundamentally strong largecaps with potential to lead the rally. IT stocks like TCS, Infy, HCL Tech, Coforge, Persistent, and L&T Tech offer contrarian buying opportunities. The GDP numbers which came out on Friday were better than expected, with 8.2% growth. This will provide fundamental support to the market. S&P’s upward revision of India’s rating outlook is also positive,” added Vijayakumar.
According to market experts, there are now indications that the Prime Minister-led NDA alliance will win more than 350 seats in the Lok Sabha elections. Market experts believe the headline indexes will scale new peaks this week after a choppy streak last week. Sensex and Nifty ended the week down nearly 2% at 73,961 and 22,531 as investors preferred to play safe ahead of D-Day.
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