Markets Reach Record Highs as Lok Sabha Poll Counting Begins
As the counting for the Lok Sabha elections 2024 commences, the stock markets have surged to unprecedented heights. Exit polls projecting a decisive victory for Prime Minister Narendra Modi have spurred investor confidence, leading to a significant rally.
Market Highlights: Nifty and BSE Surge
The Nifty index soared by 3.25% to close at 23,263.90 points on Monday, after hitting a record intraday high of 23,338.70 points. Similarly, the BSE Sensex surged by 3.39% to end at 76,468.78 points, just shy of its all-time peak of 76,738.89 points.
Positive Momentum in Stock Futures and Rupee Stability
In early trading on Tuesday, NIFTY 50 index futures climbed by 0.21%, indicating another potential record high. The rupee remained steady, trading at 83.1000 to the dollar in the non-deliverable forwards market, slightly firmer than its previous close of 83.1425.
Investor Optimism and Economic Growth
“Markets have rallied around the expected election results, and it is hard not to be optimistic about India,” stated Vivek Bhutoria, portfolio manager for emerging market equities at Federated Hermes. Policies aimed at attracting investments and the realignment of the global supply chain are expected to benefit India, particularly in electronics and chemical exports.
Sensex and Nifty Surge to Record Highs
Driven by broad-based buying, Sensex and Nifty surged over 3% on Monday, hitting all-time highs as exit polls forecasted a substantial victory for the BJP-led NDA. The BSE Sensex jumped by 2,507.47 points, or 3.39%, to close at 76,468.78 points, marking its largest single-day gain in three years. During the day, it reached a record intraday high of 76,738.89 points.
Nifty 50 Updates
The NSE Nifty climbed 733.20 points or 3.25% to finish at 23,263.90. It also recorded an intraday high of 23,338.70, driven by a sharp rally in blue-chip stocks such as Reliance Industries, ICICI Bank, HDFC Bank, and State Bank of India. Strong GDP data further buoyed the equity markets.
Sector and Stock Performance
Adani Group companies saw a continued sharp rally, with Adani Power surging nearly 16%. Sector indices for PSUs, Power, Utilities, Oil, Energy, Capital Goods, and Realty soared up to 8%. Major gainers among the 30-Sensex companies included NTPC, State Bank of India, and Power Grid, which jumped over 9% each. Other notable gainers were Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank, and Tata Steel. However, Sun Pharma, HCL Technologies, Asian Paints, Nestle, and Infosys lagged behind.
Economic Growth and Global Market Performance
India’s economy grew by 8.2% in the fiscal year ending March, maintaining its position as the fastest-growing major economy globally. In Asian markets, Seoul, Tokyo, and Hong Kong closed with gains, while Shanghai ended lower. European markets were trading positively, and US markets ended mostly higher on Friday.
Foreign Investments and Oil Prices
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday. Global oil benchmark Brent crude rose by 0.18% to USD 81.26 a barrel. On Friday, the BSE benchmark gained 75.71 points or 0.10% to settle at 73,961.31, while the Nifty advanced 42.05 points or 0.19% to end at 22,530.70.
