Sensex, Nifty open at record high as exit polls suggest Modi govt return

Stock market surge: Indian equities surged to record highs in early trading on Monday, fueled by exit polls indicating a decisive victory for Prime Minister Narendra Modi’s NDA government in the 2024 Lok Sabha elections.

The BSE Sensex soared by 2,622 points, or 3.5 percent, reaching an all-time high of 76,583 points. Simultaneously, the NSE Nifty50 climbed 807 points, hitting 23,337 points. Every stock on the Sensex was in the green, led by gains in Power Grid, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement, which rose between 3 percent and 7 percent.

In broader markets, the Nifty SmallCap index increased by 2.73 percent, while the MidCap index jumped by 2.5 percent. Sector-wise, the rally was broad-based, with the Nifty PSU Bank index up 5 percent, Nifty Realty up 4 percent, and Nifty Bank up 3 percent.

Among individual stocks, Adani Ports, Shriram Finance, and Power Grid were top performers in early trade, each rising between 6 percent and 9 percent. Shares of Adani Ports surged nearly 9 percent after its subsidiary, Adani International Ports Holdings Pte Ltd (AIPH), signed a 30-year concession agreement with the Tanzania Ports Authority to manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.

Experts predict that market volatility seen in May will subside following the announcement of the election results on June 4. “Our markets are expected to be vulnerable until the election outcome, and volatility is likely to remain high during this time,” News18 quoted Sameet Chavan, Head of Research, Technical and Derivative at Angel One as saying. As of 9:17 am, India VIX was down 17 percent at 20.6.

Analysts suggest that post-election, the market’s focus will shift to the new government’s first 100 days and the upcoming union budget. Deven Mehata, Research Analyst at Choice Broking, told the organisation, “After a huge gap up opening, Nifty can find support at 23,200 followed by 23,100 and 23,000. On the higher side, 23,650 can be an immediate resistance, followed by 23,700 and 23,800.”

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Fundamentals, technicals, and sentiments turning favorable at the same time is rare in the market. This is what has happened now. The market went into the big event, elections, very light with Nifty correcting around 600 points from the May highs. Profit booking also happened on a large scale. The short position in the market also is high. All these are going to change dramatically. DIIs, HNIs, and retail are all going to turn buyers. Short-covering can add to the momentum.”

The recent GDP figures, which showed an 8.2 percent growth, exceeded expectations and are expected to provide fundamental support to the market. Additionally, S&P’s upward revision of India’s rating outlook is seen as a positive development.