Sensex rises 2,600 points on the Modi wave, as investors add Rs 11 lakh crore on D-Street.
Experts in the market believe that a robust win for the BJP-led NDA, as indicated by the exit polls, will provide Prime Minister Narendra Modi with the political power to enact more stringent labor and land reforms.
Driven by exit polls indicating a third term for Prime Minister Narendra Modi and the BJP-led NDA with a solid mandate, Indian equities markets reached unprecedented levels on Monday.
The Nifty50 jumped 579 points, or 2.57%, to trade at 23,109 by 9:17 am, while the BSE Sensex began at a record high, rising 2,178 points, or 2.94%, to reach 76,139.
The Nifty50 increased 665.60 points to 23,196.30 at approximately 10:20 am, while the Sensex gained 2,118.84 points to 76,080.15. The dramatic decline in volatility propelled a spectacular rally in the broader markets as well.
The expectation that PM Modi will continue to drive investments in manufacturing and infrastructure lifted investor mood. For this reason, Nifty PSU Bank, Nifty Energy, and Nifty Realty
Investors gained wealth as a result of the market capitalization of all BSE-listed companies increasing by more than Rs 11 lakh crore.
Gains of 3-5% were observed in important industries like PSU banks, oil and gas, financial services, metals, real estate, and autos.
Mehta Equities Ltd.'s Senior VP (Research), Prashanth Tapse, stated: "Dalal Street is poised for a strong start to June driven by optimistic exit poll results predicting a significant win for the BJP-led NDA."
All of the exit polls point to a BJP victory, which has boosted the markets, according to Ravi Singh, Senior Vice President of Retail Research at Religare Broking. "However, election-related uncertainty could lead to volatility," Singh added. Though they should expect volatility, investors should not lose hope for a possible rally if everything works out as planned.
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