Stock market surges on exit polls favoring BJP
The Sensex surged over 2,000 points this morning, while the Nifty posted its biggest jump in four years at market opening.
In early trade, the share market has witnessed a significant surge, buoyed by optimism surrounding political stability as indicated by the exit polls.
The Sensex, comprising 30 shares, surged over 2,000 points, while the Nifty, consisting of 50 stocks, recorded its largest increase in four years at market opening.
Both Sensex and Nifty hit record highs today, with all stocks in the green.
During pre-open, Nifty saw a sharp rise of over 800 points or 3.58% to reach 23,227.90, while Sensex jumped by 2,621.98 points or 3.55% to hit 76,583.29. Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC were among the top performers driving the market rally with substantial gains.
The positive market sentiment was further bolstered by the latest GDP data, which indicated a robust 8.2% fiscal growth.
Varun Aggarwal, founder and managing director of Profit Idea, attributed the buoyant sentiments to India’s impressive Q4FY24 GDP growth of 7.8%, surpassing expectations, with the fiscal year’s growth standing at 8.2%. However, he cautioned that the market might remain volatile in anticipation of the pending election results tomorrow.
According to an aggregate of 12 exit polls on Saturday, the BJP is predicted to return to power with the ruling NDA alliance securing 365 seats. Analysts note that the market typically favors political stability, and a change in government could introduce volatility.
Exit polls have also indicated potential breakthroughs for the BJP in Kerala and Tamil Nadu in the south, and significant gains in Odisha and Bengal in the east. However, it’s important to note that exit polls are not always accurate.
While the BJP has welcomed the exit poll predictions, the Opposition has dismissed them, anticipating different results on counting day. Following a meeting of Opposition leaders from the INDIA bloc, Congress chief Mallikarjun Kharge expressed confidence that the bloc would secure at least 295 seats out of the total 543.
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