Sensex and Nifty surged to all-time highs amidst expectations of a BJP-led NDA victory in the Lok Sabha Elections 2024. Exit polls suggest a third consecutive term for Prime Minister Narendra Modi, bolstering investor confidence.
Investors saw a significant rise in their wealth on Monday as the main stock index, Sensex, reached an all-time high. This surge came after exit polls suggested a big win for the BJP-led NDA in the Lok Sabha elections. Sensex, which tracks the performance of 30 major stocks, shot up by 2,777.58 points, reaching a record peak of 76,738.89 in early trade.
As a result of this impressive rally, the combined market value of companies listed on the Bombay Stock Exchange (BSE) rose by a whopping Rs 12.48 lakh crore, hitting an unprecedented high of Rs 4,24,61,833.82 crore (equivalent to USD 5.10 trillion) during morning trading.
The exit polls, released on Saturday, painted a strong picture for the current government, indicating that Prime Minister Narendra Modi is likely to secure a third consecutive term.
Narendra Solanki, who heads Fundamental Research at Anand Rathi Shares and Stock Brokers, commented that the exit poll results bode well for the market both in the short and long term. He also highlighted the recent robust GDP growth data, which showed India's economy expanding by 8.2% in the last fiscal year, solidifying its position as the world's fastest-growing major economy.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, echoed this sentiment, stating that the better-than-expected GDP figures provide a strong foundation for the market.
In the stock market, all 30 companies listed on the Sensex were experiencing gains. Among the top performers were Power Grid, NTPC, State Bank of India, Larsen & Toubro, Mahindra & Mahindra, IndusInd Bank, and Axis Bank.
Elsewhere in Asia, markets in Seoul, Tokyo, and Hong Kong were trading positively, although Shanghai saw a decline. In the United States, markets closed mostly higher on Friday.
Foreign Institutional Investors (FIIs) also contributed to the market positivity by purchasing equities worth Rs 1,613.24 crore on Friday, according to exchange data.
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