Sensex and Nifty 50 Surge to Record Highs as Exit Polls Predict BJP-Led NDA's Third Term

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Sensex and Nifty 50 Surge to Record Highs as Exit Polls Predict BJP-Led NDA's Third Term

Team FS

03/Jun/2024

Key Points:

Sensex and Nifty 50 hit fresh record highs, driven by positive exit poll predictions and better-than-expected GDP figures.
Major gains were observed across large-cap, mid-cap, and small-cap stocks, reflecting broad market confidence.
Key sectors, including PSU banks and oil & gas, saw significant surges, while volatility decreased, indicating market stability.

On Monday, June 6, 2024, the Indian stock market witnessed a historic surge with benchmark indices, the Sensex and Nifty 50, achieving their highest gains since January 2021. This remarkable rally came after a period of cautious trading, propelled by exit polls predicting a favorable outcome for the incumbent government, positive economic data, and favorable global cues.

Record Highs Driven by Exit Polls and Economic Optimism

The Sensex opened significantly higher by 2,622 points at 76,583.29, against its previous close of 73,961.31, and surged 2,778 points, or 3.8 per cent, to hit its fresh record high of 76,738.89. The 30-share pack finally closed with a hefty gain of 2,507 points, or 3.39 per cent, at 76,468.78, with 25 stocks in the green.

The Nifty 50 opened 807 points higher at 23,337.90 against its previous close of 22,530.70. It rose 808 points, or 3.6 per cent, to hit its fresh record high of 23,338.70 in early deals. The Nifty 50 closed at 23,263.90, up 733 points, or 3.25 per cent.

In percentage terms, it was the biggest single-day gain for both the Sensex and Nifty 50 since January 2, 2021, when both indices had surged by 5 per cent each, according to Bloomberg data.

Broad Market Confidence

Buying was not limited to large-cap stocks alone. The mid-cap and small-cap indices also reached fresh record highs during the session, reflecting investors' confidence in the Indian stock market. This optimism is driven by prospects of political stability, policy continuity, and the nation's robust economic growth.

The BSE Midcap index hit its fresh all-time high of 44,560.97 during the session but closed 3.54 per cent higher at 44,367.67. The BSE Smallcap index hit its fresh record high of 48,973.96 during the session and finally settled with a gain of 2.05 per cent at 48,232.30.

The volatility index India VIX crashed 15 per cent to come back to the level of 20.94. A fall in India VIX shows market participants expect the market to remain stable in the near term as the India VIX measures expected volatility in the Nifty 50 over the next 30 days.

The overall market capitalisation of the firms listed on the BSE rose to nearly ₹426 lakh crore from nearly ₹412 lakh crore in the previous session, making investors richer by about ₹14 lakh crore in a single session.

As many as 284 stocks, including Reliance Industries, SBI, ICICI Bank, Axis Bank, Larsen and Toubro, Mahindra and Mahindra, Bharti Airtel, NTPC, and Power Grid, hit their fresh 52-week highs in intraday trade on BSE.

Top Nifty Gainers and Losers

Among the 43 stocks that ended with gains in the Nifty 50 index, Adani Ports (up 10.62 per cent), SBI (up 9.48 per cent), NTPC (up 9.33 per cent), Power Grid (up 9.03 per cent), and ONGC (up 7.43 per cent) ended at the top.

On the flip side, Eicher Motors (down 1.34 per cent), LTIMindtree (down 1.12 per cent), HCL Tech (down 0.57 per cent), Sun Pharma (down 0.32 per cent), Asian Paints (down 0.22 per cent), Britannia (down 0.19 per cent), and Dr Reddy's Labs (down 0.03 per cent) were the seven stocks in the index that fell on Monday.

Sectoral Indices Performance

All major sectoral indices ended with gains. Nifty PSU Bank index surged 8.40 per cent, followed by Nifty Oil & Gas (up 6.81 per cent) and Nifty Realty (up 5.95 per cent) index.

Nifty Bank surged 4.07 per cent while the Financial Services index and the Private Bank index jumped 4.04 per cent and 3.34 per cent, respectively.

Conclusion

The dramatic rise of the Sensex and Nifty 50 to record highs reflects a renewed sense of optimism among investors. The combination of political stability, policy continuity, and strong economic indicators has created a favorable environment for market growth. With the India VIX indicating decreased volatility, the market is expected to remain stable in the near term, further bolstering investor confidence. As the political landscape unfolds and economic policies continue to support growth, the Indian stock market is poised for continued strength.

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Sensex and Nifty 50 Surge to Record Highs as Exit Polls Predict BJP-Led NDA's Third Term

Record Highs Driven by Exit Polls and Economic Optimism

Broad Market Confidence

Top Nifty Gainers and Losers

Sectoral Indices Performance

Conclusion

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