Indian equities hit record highs in opening deals on Monday on the back of exit polls, which indicate a clear victory for Prime Minister Narendra Modi-led NDA government in 2024 Lok Sabha elections.
The BSE Sensex zoomed 2,622 points, or 3.5 per cent, to hit new lifetime high of 76,583 levels, while the NSE Nifty50 climbed 807 points to 23,337 levels.
All the stocks were in the green on the Sensex led by Power Grid, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement. These stocks were up in the range of 3 per cent to 7 per cent.
In the broader markets, Nifty SmallCap rose 2.73 per cent while MidCap jumped 2.5 per cent.
Sectorally, the broad-based rally was led by Nifty PSU Bank index (up 5 per cent), Nifty Realty (4 per cent), and Nifty Bank (3 per cent).
Among individual stocks, Adani Ports, Shriram Finance, and Power Grid were the top performers in early trade, each climbing 6-9 percent.
Shares of Adani Ports gained nearly 9 percent as the company’s wholly owned subsidiary Adani International Ports Holdings Pte Ltd (AIPH) signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.
According to experts, market volatility observed in May is expected to subside after the election results are announced on June 4. “Our markets are expected to be vulnerable until the election outcome, and volatility is likely to remain high during this time,” said Sameet Chavan, Head Research, Technical and Derivative, Angel One. At 9.17 am, India VIX was down 17 per cent at 20.6.
Post-election, the market’s focus will shift to the first 100 days of the new government and the union budget, said analysts.
“After a huge gap up opening Nifty can find support at 23,200 followed by 23,100 and 23,000,” said Deven Mehata, Research Analyst at Choice Broking. “On the higher side, 23,650 can be an immediate resistance, followed by 23,700 and 23,800,” he added.
Stock Market View | Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Fundamentals, technicals and sentiments turning favourable at the same time is rare in the market. This is what has happened now. The market went into the big event, elections, very light with Nifty correcting around 600 points from the May highs. Profit booking also happened on a large scale. The short position in the market also is high. All these are going to change dramatically. DIIs, HNIs, and retail are all going to turn buyers. Short-covering can add to the momentum.
The rally is likely to be led by largecaps. Stocks like RIL, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L&T, M&M, Tata Motors, Bajaj Auto, Eicher Motors are fundamentally strong largecaps with potential to lead the rally. IT stocks like TCS, Infy, HCL Tech, Coforge, Persistent and L&T Tech offer contrarian buying opportunities.
The GDP numbers which came on Friday were better than expected with 8.2% growth. This will provide fundamental support to the market. S&P’s upward revision of India’s rating outlook also is positive.
