The upcoming trading week is poised to commence on a positive trajectory in the stock market, buoyed by the outcomes of the recent exit polls. Projections from these polls suggest a comfortable majority for Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP)-led alliance, ranging between 300 to 350 seats in the 543-member Lok Sabha.
While the victory of the ruling government was anticipated, the margin of the win remained a point of speculation. The latest exit polls indicate a substantial margin in favor of the PM Modi-led government, potentially enabling it to form the government with ease and execute policy revisions or amendments.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the exit poll results could serve as a significant catalyst for bullish sentiment in the market. He emphasized that this projection might act as the final impetus for bullish sentiment to influence market dynamics positively. Moreover, the better-than-expected GDP growth rate of 8.2% for the previous fiscal year FY24, announced post-market hours on Friday, further contributes to investor optimism.
In early trading on Monday, the GIFT Nifty futures hovered near 23,336, indicating a potential surge of approximately 500 points on the benchmark Nifty 50 index. By 8:30 AM, the futures had surpassed the 23,500 range.
In the previous trading session on Friday, both key equity benchmark indices, Sensex and Nifty, experienced a reversal of trend, breaking free from the week’s losing streak. The S&P BSE Sensex concluded trading at 73,961, recording a marginal increase of 76 points, while the NSE Nifty 50 closed the session at 22,531, registering a gain of nearly 50 points.
