Indian Stock Market Hits Record Highs on Exit Poll Predictions
In a dramatic turn of events, the Indian stock market benchmarks—the Nifty 50 and the Sensex—soared to record-high levels in early trade on Monday, June 3. This surge came after a majority of the exit polls predicted that the Bharatiya Janata Party (BJP)-led NDA may win over 350 of the 543 seats in the Lok Sabha elections 2024.
The Sensex opened a whopping 2,622 points higher at 76,583.29, while the Nifty 50 opened 807 points higher at 23,337.90. Both indices continued to surge, with the Sensex hitting a fresh record high of 76,738.89 and the Nifty 50 reaching a new peak of 23,338.70 in early deals.
Investors across segments went on a buying spree, driving the midcap and smallcap indices to fresh record highs as well. The BSE Midcap index surged 4 percent to hit 44,560.97, while the BSE Smallcap index jumped 3.6 percent to reach 48,973.96.
Notably, nearly 200 stocks, including major players like SBI, ICICI Bank, and Bharti Airtel, hit their fresh 52-week highs in intraday trade on Monday.
The positive market sentiment was further bolstered by other factors, including the macroeconomic boost from India’s GDP growth of 8.2 percent for the full year FY24 and the government’s fiscal deficit standing at 5.63 percent of the GDP.
Global cues also played a role in supporting the domestic market sentiment, with hopes of rate cuts in Europe and the US Fed considering rate cuts in the second half of the year. Positive macro data from major Asian economies added to the optimism in the market.
Overall, the exit poll results and the subsequent market surge have set a positive tone for the Indian stock market, with analysts anticipating further gains in the coming days. Investors are advised to stay tuned to market developments and consult certified experts before making any investment decisions.
