Markets

Exit polls drive markets to record high; investors richer by Rs.13.78 lakh cr

Following the huge rally in equities, the market capitalization of BSE-listed companies climbed Rs.13,78,630.4 crore to hit an all-time peak

PGurus Newsdesk

June 4, 2024

Following the huge rally in equities, the market capitalization of BSE-listed companies climbed Rs.13,78,630.4 crore to hit an all-time peak

BSE firms Mcap at a record high

In a massive surge in stocks, investors’ wealth jumped Rs.13.78 lakh crore on Monday as the benchmark equity index Sensex hit its lifetime high.

The markets were at a record high after exit polls predicted a massive win for the Prime Minister Narendra Modi-led NDA in the Lok Sabha polls.

The 30-share BSE Sensex jumped 2,777.58 points or 3.75 percent 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 percent.

Following the huge rally in equities, the market capitalization 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.

Pranav Haridasan, Managing Director and Chief Executive Officer of Axis Securities, said, “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.”

India’s economy grew by 8.2 percent 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 actual election outcome confirms the exit poll results, 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 percent each, while Power Grid jumped nearly 9 percent. 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 percent, and smallcap index jumped 2.05 percent. 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. According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday.

For all the latest updates, download PGurus App.