A graph showing the sharp rise of the Sensex, symbolizing the 2,600 points surge and the resulting increase in investors’ wealth.
Stock Market Latest News: Sensex skyrockets 2,600 points, adding Rs 11 lakh crore to investors’ wealth; Know key reasons
Sensex and Nifty opened at record highs after exit polls predicted a landslide victory for the BJP. Nifty 50 and Sensex surged nearly 3 per cent, reaching record highs of 23,338.70 and 76,738.89, respectively.
“Exit poll results indicating a clear victory for the NDA with around 360 seats have alleviated the election jitters that have been weighing on markets in May,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
All major sectors rose, with small- and mid-caps also seeing significant gains. The polls, indicating a likely two-thirds majority for the ruling party, boosted market sentiment despite their historically mixed accuracy.
All 13 major sectoral indices were in the green. Nifty Energy, Nifty PSU Bank, and Nifty Realty were the top gainers, each rising 4-5 per cent. Nifty Pharma and Nifty Healthcare saw the smallest gains, with both indices increasing by 1.2 per cent.
Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 11.1 lakh crore to Rs 423.21 lakh crore.
“All the exit polls indicate that the BJP will retain power, which is expected to lead to a positive reaction in the markets. However, given the election-related uncertainty, we may see a volatile session on Monday as the market reacts to the exit poll numbers and anticipates the final outcomes. Investors should be prepared for fluctuations but can remain optimistic about a potential rally if the final results align with the exit polls,” Dr. Ravi Singh, Senior Vice President- Retail Research at Religare Broking.
India VIX eases 22%
Indian stock market’s fear gauge — India VIX — cooled off 22 per cent in morning deals on Monday, June 3, as investors shrugged off Lok Sabha election-related jitters.
India VIX, or India Volatility index, fell 22.2 per cent to 19.21 levels in early deals, down from Friday’s close of 24.6 level, after exit polls predicted a landslide victory for the Narendra Modi-led Bharatiya Janata Party (BJP) and the National Democratic Alliance (NDA) government in 2024 Lok Sabha elections.
Better Than Expected GDP Numbers
India’s economic growth accelerated to 8.2 per cent in the financial year to March 2024 led by government spending on infrastructure and a boom in real estate, data showed last week.
“The GDP numbers which came on Friday were better than expected with 8.2% growth. This will provide fundamental support to the market. S&P’s upward revision of India’s rating outlook also is positive,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Nifty Technical
“After a huge gap up opening Nifty can find support at 23,200 followed by 23,100 and 23,000,” said Deven Mehata, Research Analyst at Choice Broking. “On the higher side, 23,650 can be an immediate resistance, followed by 23,700 and 23,800,” he added.
FII/DII Tracker
The Foreign institutional investors (FIIs) turned net buyers on the final day of the month, as they bought Indian equities worth Rs 1,613.24 crore , while domestic institutional investors bought equities worth Rs 2,114.17 crore on May 31.
Rupee Strengthens
The Indian rupee rose 42 paise to 83 against the US dollar in early trade after exit polls indicated a third term for Prime Minister Narendra Modi.
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