Sensex and Nifty opened at record highs after exit polls predicted a landslide victory for the BJP. Both Nifty 50 and Sensex surged nearly 3 percent, 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 13 major sectoral indices were in the green. Nifty Energy, Nifty PSU Bank, and Nifty Realty were the top gainers, each rising 4-5 percent. Nifty Pharma and Nifty Healthcare saw the smallest gains, with both indices increasing by 1.2 percent.
In the broader market, BSE Midcap gained nearly 4 percent while BSE Smallcap gained 2 percent.
Among individual stocks, Adani Ports, Shriram Finance, and Power Grid were the top performers in early trade, each climbing 7-10 percent.
Shares of Adani Ports gained 10 percent as the company's wholly owned subsidiary Adani International Ports Holdings Pte Ltd (AIPH) signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.
At 9.45 am, the Sensex was up 1,731 points or 2.3 percent at 75,692 and the Nifty 50 was up 537 points or 2.4 percent at 23,067. About 2,633 shares advanced, 571 shares declined, and 117 shares remained unchanged.
Excluding LTIMindtree and Eicher Motors, the remaining 48 stocks in the Nifty 50 list gained.
"While we won't be completely out of the woods until the official election results are announced, there is a renewed sense of confidence in the market. The exit polls have significantly reduced uncertainty," said Nirav Karkera, Head of Research at Fisdom.
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Market volatility observed in May is expected to subside after the election results are announced on June 4, according to experts. "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. At 9.45 am, India VIX was down 21 percent at 19.3.
Post-election, the market's focus will shift to the first 100 days of the new government and the union budget, said analysts.
India's gross domestic product (GDP) for the January-March quarter of Q4FY24 came in at 7.8 percent, driven by robust growth in the manufacturing sector. The Indian economy outperformed D-Street estimates, growing by 8.2 percent for FY24. "The bulls will be further emboldened by the better-than-expected 8.2% GDP growth, which was announced after market hours on Friday. Both technically and fundamentally, the market is poised for a rally," Vijayakumar added.
"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.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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