Indian equity markets surged more than 3 percent on June 3, clocking the biggest single-day gain in three years, as Dalal Street cheered the outcome of most of the exit poll, predicting a significant win for the BJP-led NDA for the third time in a row.
The estimate-beating GDP data, early monsoon, higher GST collections, and positive global markets also added fuel to the rally.
In today's rise, the investors wealth increased by Rs 14.18 lakh crore, as the market capitalisation of BSE-listed companies jumped to Rs 426.31 lakh crore, from Rs 412.12 lakh crore in previous session.
At close, the Sensex was up 2,507.47 points or 3.39 percent at 76,468.78, and the Nifty was up 733.20 points or 3.25 percent at 23,263.90.
A gap-up opening helped the market to touch record highs with BSE Sensex and Nifty50 climbed to 76,738.89 and 23,338.70, respectively, amid buying across the sectors.
Nifty Bank index also touched fresh record high of 51,133.20 on an intraday basis.
Biggest gainers on the Nifty included Adani Ports, NTPC, SBI, Power Grid Corp and ONGC, while losers were Infosys, LTIMindtree, HCL Technologies, Nestle and Dr Reddy's Laboratories.
All the sectoral indices ended in the green with capital goods, PSU Bank, oil & gas, power and realty up 5-8 percent.
The BSE midcap index rose 3.5 percent while smallcap index added 2 percent.
Among individual stocks, a volume spike of more than 300 percent was seen in Bank of Baroda, IOC and Navin Fluorine International.
A long build-up was seen in PFC, Gail India and REC, while a short build-up was seen in Ipca Laboratories, Eicher Motors and Samvardhana Motherson International.
More than 250 stocks touched their 52-week high on the BSE, including Adani Enterprises, Adani Ports, Axis Bank, Bharti Airtel, Canara Bank, CG Power, Coal India, Container Corporation, Godrej Properties, HPCL, ICICI Bank, Indian Bank, JSW Energy, L&T, M&M, NTPC, Power Finance, Power Grid Corporation, REC, Reliance Industries, SBI, Union Bank, among other stocks. Click to view full list
Outlook for June 4
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Nifty witnessed a gap up opening and consolidated with a positive bias to close with gains of ~733 points. On the daily charts we can observe that the Nifty has broken above the previous swing high of 23110 suggesting start of a next leg of upmove which can extend till 23500 - 23740 from short term perspective.
The psychological level of 23000 shall act as a key support from short term perspective. Daily and hourly momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator suggest continuation of the rally.
Bank Nifty has finally hit a new all-time high and we expect the positive momentum to continue. Our short-term target of 51000 has been achieved. The next target is placed at 53960 – 54000 zone as per the Fibonacci extension method. The level of 50000 shall act as a crucial support from short term perspective.
Aditya Gaggar Director of Progressive Shares
Indian equities commenced the month of June on a robust note at a fresh high of 23,338 but then oscillated in a narrow range throughout the day to settle the trade at 23,263.90 with gains of 733.20 points. All the sectors ended the day in green with PSU Banks and Energy being the top performers. Broader markets have witnessed a mixed trend where Midcaps more or less moved in tandem with the Frontline Index while Smallcaps underperformed.
On the daily timeframe, the Index has formed a Hanging Man candlestick pattern which represents trend reversal but in the near term, it is the general election's outcome likely to influence the market trend which will lead to immense volatility.
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