Indian stock markets hit record highs as exit polls predict a Modi-led NDA victory in the 2024 elections. Sensex jumps 2600 points, Nifty tops 23,300. Explore the key drivers behind this surge.
Sensex Soars 2600 Points, Nifty Tops 23,300 as Exit Polls Predict Modi Govt Return
Indian equities surged to record highs on Monday, driven by exit polls predicting a clear victory for Prime Minister Narendra Modi-led NDA government in the 2024 Lok Sabha elections.
Key Highlights:
- Sensex and Nifty Performance:
- The BSE Sensex zoomed 2,622 points (3.5%) to reach a new lifetime high of 76,583.
- The NSE Nifty50 climbed 807 points (3.6%) to 23,337.
- Top Gainers:
- Power Grid, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement led the gains, each rising between 3% and 7%.
Broader Market Trends
- SmallCap and MidCap Indices:
- Nifty SmallCap rose 2.73%.
- Nifty MidCap jumped 2.5%.
- Sectoral Performance:
- Nifty PSU Bank Index soared 5%.
- Nifty Realty rose 4%.
- Nifty Bank increased by 3%.
Individual Stock Performance
- Top Performers:
- Adani Ports, Shriram Finance, and Power Grid gained 6-9%.
- Adani Ports surged nearly 9% following a 30-year concession agreement with Tanzania Ports Authority to operate Container Terminal 2 at Dar es Salaam Port.
Market Outlook and Expert Insights
Experts predict market volatility will decrease post-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,” said Sameet Chavan, Head Research, Technical and Derivative, Angel One.
Key Support and Resistance Levels
- Nifty Support:
- Immediate support at 23,200, followed by 23,100 and 23,000.
- Nifty Resistance:
- Immediate resistance at 23,650, followed by 23,700 and 23,800.
Market Sentiment and Future Trends
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, noted, “Fundamentals, technicals, and sentiments turning favorable simultaneously is rare. The market went into the elections light, with Nifty correcting around 600 points from May highs. Profit booking was substantial, and the short position in the market was high. This will change dramatically, with DIIs, HNIs, and retail investors turning buyers.”
Major Large-cap Stocks to Watch
- Financial and Auto Sectors:
- RIL, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L&T, M&M, Tata Motors, Bajaj Auto, and Eicher Motors are fundamentally strong large-caps with potential to lead the rally.
- IT Sector:
- TCS, Infosys, HCL Tech, Coforge, Persistent, and L&T Tech offer contrarian buying opportunities.
Economic Indicators
- GDP Growth:
- India’s GDP growth rate of 8.2% was higher than expected, providing fundamental support to the market.
- Credit Rating:
- S&P’s upward revision of India’s rating outlook is also a positive development.
Conclusion
As the Indian stock market reacts to political developments, investors should monitor key support and resistance levels, and consider the potential of large-cap stocks in the financial, auto, and IT sectors. The post-election period will be crucial for market stability and growth, with significant opportunities for strategic investments.
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