New Delhi: Investors’ wealth jumped Rs 13.78 lakh crore on Monday as the benchmark equity index Sensex hit its lifetime high after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.
The 30-share BSE Sensex jumped 2,777.58 points or 3.75 per cent to hit a record peak of 76,738.89 in early trade. The benchmark finally ended at 76,468.78, registering a sharp rally of 2,507.47 points or 3.39 per cent.
Following the huge rally in equities, the market capitalisation of BSE-listed companies climbed Rs 13,78,630.4 crore to hit an all-time peak of Rs 4,25,91,511.54 crore (USD 5.13 trillion).
Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls.
The counting of votes will take place on June 4.
“Today, the Indian stock market responded positively due to optimism about policy continuity. This optimism follows exit polls from the recent Lok Sabha elections, predicting a clear victory for the ruling NDA party. Equity markets jumped in line with expectations of a development-driven agenda, with the Nifty scaling a new record high.
“Additionally, the India VIX index – it measures market volatility – which had risen significantly in the past month, has cooled down post the exit poll numbers,” Pranav Haridasan, Managing Director and Chief Executive Officer of Axis Securities, said.
India’s economy grew by 8.2 per cent in the fiscal year that ended in March, cementing the country’s position as the fastest-growing major economy in the world.”Nifty and Sensex have reached record highs following positive exit polls, with much of this optimism already reflected in current market levels.
“If the exit poll results are confirmed by the actual election outcome, we could see further gains, with Nifty possibly advancing towards 23,500 and Sensex approaching 77,000,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said.
Among the 30 Sensex companies, NTPC and State Bank of India rallied over 9 per cent each, while Power Grid jumped nearly 9 per cent. Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank and Tata Steel were the other big gainers.
HCL Technologies, Sun Pharma, Asian Paints, Nestle and Infosys were the laggards. In the broader market, the BSE midcap gauge climbed 3.54 per cent and smallcap index jumped 2.05 per cent. Both the indices hit their all-time peaks in intra-day.
As many as 2,346 stocks advanced while 1,615 declined and 154 remained unchanged on the BSE. In Asian markets, Seoul, Tokyo and Hong Kong settled with gains while Shanghai ended lower.
European markets were trading with gains. US markets ended mostly higher on Friday. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday, according to exchange data.
