The exit polls suggesting a decisive win for the NDA government propelled benchmarks Nifty and Sensex to new highs on June 3. Both the indices clocked best percentage gains in a single day in over three years, since February 2021.
While all 13 sectoral indices were in the green, financial services, oil and gas, and power sectors led the rally in Nifty. Today, Nifty hit an all-time high of 23,338, and Sensex hit a fresh high of 76,738.
"Increased retail participation have significantly contributed to this upswing," said Puneet Maheshwari, Director, Upstox.
At close, the Sensex was up 2,507 points or 3.4 percent at 76,468 and the Nifty 50 was up 733 points or 3.3 percent at 23,263. About 2,210 shares advanced, 1,310 shares declined, and 103 shares remained unchanged.
In the broader market, BSE Midcap rose 3.5 percent while BSE Smallcap gained over 2 percent.
Analysts also attributed the rally in the Indian equity market to India's GDP exceeding estimates at 8.2 percent for FY24, a reduction in the fiscal deficit, an early monsoon advancement, and a 10 percent rise in GST collections to Rs 1.73 lakh crore in May.
NTPC, SBI, and Adani Ports were the top gainers in Nifty 50 as the stocks rose 9.3-10.6 percent. Meanwhile, HCL Tech, LTIMindtree, and Eicher Motors were the worst hit as they fell 0.6-1.3 percent.
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Today, SBI became the seventh Indian listed company to surpass Rs 8 lakh crore in market capitalisation. Adani Group stocks were in focus as they surged for the second consecutive session, mirroring the bullish trend in Indian equities.
At the same time, shares of Eicher Motors closed 1.3 percent lower after the company reported a drop in motorcycle sales in May amid challenging circumstances.
Nifty PSU Bank rose 8.6 percent, emerging as the top gainer amongst sectoral indices. This was followed by gains in Nifty Oil & Gas and Nifty Realty, which gained 7 percent and 5.7 percent, respectively.
Nifty Bank crossed a significant milestone as it surged past the 51,000 mark for the very first time and hit an intraday high of 51,133. "This positive movement was fueled by exit polls predicting a third term for Prime Minister Narendra Modi and his BJP party," said Ashish Kumar, Founder of StoxBazar. At close, Nifty Bank was up 4.3 percent at 51,097.
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Bank of Baroda led the pack with a jump of 12 percent, followed by State Bank of India (SBI) at 9.5 percent. Axis Bank, IndusInd Bank, and Punjab National Bank gained over 4-6 percent. Other players like Federal Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank rose 2-4 percent.
"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," said Santosh Meena, Head of Research at Swastika Investmart. He expects Nifty 50 to surpass 24,000 in the coming days after a period of consolidation.
"There is little chance that these markets will roll back unless the outcome on June 4th is not per expectation," said Alok Jain, Founder of Weekend Investing. Jain said that the actual results may be even stronger than the exit polls. "All in all, markets are putting their faith into the leadership with great potential for India to emerge as a fast-growing, strong, and stable nation,” he said.
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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