A strong market rally added Rs 11 lakh crore to Dalal Street investors’ wealth as the Sensex and Nifty hit record highs, driven by exit polls predicting a decisive victory for the BJP-led NDA.
Indian equity markets soared to new heights on Monday, driven by exit polls suggesting a third term for Prime Minister Narendra Modi and the BJP-led NDA with a strong mandate.
The BSE Sensex opened at a record high, climbing 2,178 points, or 2.94%, to reach 76,139, while the Nifty50 surged 579 points, or 2.57%, to trade at 23,109 by 9:17 am.
At around 10:20 am, the Sensex was up 2,118.84 points at 76,080.15, while the Nifty50 rose 665.60 points to 23,196.30. The broader markets also witnessed a stellar rally, driven by a sharp plunge in volatility.
Investor sentiment was buoyed by the prospect of continued investment in infrastructure and manufacturing under PM Modi’s leadership. This is why Nifty Energy, Nifty PSU Bank, and Nifty Realty were the top gainers, each rising between 4-5%.
The market capitalisation of all listed companies on the BSE jumped by over Rs 11 lakh crore, making investors richer.
Key sectors such as PSU banks, oil and gas, financial services, metals, realty, and auto saw gains of 3-5%.
Exit poll euphoria
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Dalal Street is poised for a strong start to June driven by optimistic exit poll results predicting a significant win for the BJP-led NDA.”
Meanwhile, Ravi Singh, Senior Vice President of Retail Research at Religare Broking, also highlighted that all the exit polls suggest a BJP victory, which has positively impacted the markets.
“However, election-related uncertainty could lead to volatility. Investors should be prepared for fluctuations but remain optimistic about a potential rally if final results align with exit polls,” Singh added.