The Indian stock market indices, Sensex and Nifty 50, opened at record highs on Monday, driven by exit polls forecasting a historic third term for Prime Minister Narendra Modi and the National Democratic Alliance (NDA).
The Nifty 50 surged 3.58%, while the Sensex climbed 3.55%, both reaching unprecedented levels. The Sensex rose by 2,621.98 points to 76,583.29, and the Nifty increased by 807.20 points to 23,337.90.
All stocks on the Sensex were in the green, with significant gains seen in Power Grid, Adani Ports, Shriram Finance, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement. These stocks registered increases ranging from 3% to 7%.
Additionally, the Bank Nifty index surpassed the 50,000 mark for the first time. The Nifty Smallcap 100 and Nifty Midcap 100 indices also saw substantial growth, each advancing nearly 3%.
Among sectoral indices, Nifty Energy, Nifty PSU Bank, and Nifty Realty were the top performers, each rising between 4-5%.
This robust market rally followed a five-day losing streak, which ended on May 31 with the benchmark Sensex closing 75 points higher. Market experts anticipate that the volatility observed in May will diminish after the official election results are announced on June 4.
The positive market sentiment is further bolstered by the National Statistical Office (NSO) data, which reported an 8.2% economic growth rate for the fiscal year 2023-24 (FY24).
The exit polls for the 2024 Lok Sabha elections predict a decisive victory for the BJP-led NDA, suggesting that Prime Minister Narendra Modi is poised for a third term. According to most pollsters, the NDA is expected to exceed its 2019 tally of 353 seats, with projections ranging from 350 to 380 seats.
