The Nifty 50 and the Sensex, two benchmarks for the Indian stock market, surged to all-time highs in early trade on Monday, June 3, following predictions from most exit polls on Saturday, June 1, that the NDA, led by the Bharatiya Janata Party (BJP), may win more than 350 of the 543 Lok Sabha seats in 2024. Election-related anxiety subsided for the Indian stock market, as exit polls indicated that the BJP-led NDA would win a sizable majority and return to power.
A Stock Market Comparison
In contrast to its previous closing of 73,961.31, the Sensex began 2,622 points higher at 76,583.29 and then climbed 2,778, or 3.8 percent, to reach its new record high of 76,738.89. Ultimately, the 30-share pack closed at 76,468.78, up 2,507 points, or 3.39 percent, with 25 equities in the green.
Compared to its previous closing of 22,530.70, the Nifty 50 opened 807 points higher at 23,337.90. In early transactions, it gained 808 points, or 3.6%, to reach a new record high of 23,338.70. The Nifty 50 gained 733 points, or 3.25 percent, to settle at 23,263.90.
The BSE Midcap Index
A wild purchasing frenzy by investors spread across all market segments, and the small- and mid-cap indices also shot up to new all-time highs, rising by about 4% apiece.
The BSE Midcap index concluded 3.54 percent higher at 44,367.67 despite reaching a new all-time high of 44560.97 during the session. During the session, the BSE Smallcap index reached a new high of 48,973.96 and ended the session at 48,232.30, up 2.05 percent.
In intraday trading on the BSE on Monday, nearly 300 stocks—including SBI, ICICI Bank, Axis Bank, Bharti Airtel, Larsen & Toubro, Mahindra and Mahindra, NTPC, and Power Grid—reached new 52-week highs.
Nifty 50 And Sensex Stock Markets End Their Streak
The Nifty 50 and Sensex ended their three-month winning streak in May, ending lower as a result of increased volatility brought on by election-related concerns. In May, the India VIX volatility index increased by 91%.
Experts have found three other factors that could have contributed to the positive attitude in the stock market, even if the exit poll findings were the primary driver.
“Nifty opened higher, mostly due to exit poll results showing the BJP-led NDA government winning handily for the third consecutive election. Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, stated that in addition to this, a few other factors that drove the index higher were better-than-expected GDP figures, the significant decline in US markets on Friday, the start of the monsoon, and a decrease in the fiscal deficit.
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