Monday, June 17, 2024
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Stock market exit polls rally adds Rs 12 lakh crore to investors’ wealth as PM Modi likely to return to power

Stock market today: BSE Sensex and Nifty50 rally has led to the market capitalization of all listed companies on the BSE increasing by Rs 11.96 lakh crore to reach Rs 424.08 lakh crore.
Indian equity markets soared to record highs on Monday, with the Nifty 50 surpassing 23,000 and the BSE Sensex crossing 76,000, driven by exit polls suggesting a comfortable third term for Prime Minister Narendra Modi.Investors anticipate that Modi’s government will maintain its focus on infrastructure and manufacturing investments to support economic growth.
The majority of exit polls indicate that the BJP is expected to secure victory in the Lok Sabha election on June 4th, with an average projection of 374 seats for the BJP-led NDA.
Sector-wise, Nifty PSU Bank, Oil & Gas, Financial Services, Metal, Realty, and Auto opened with gains ranging from 3% to 5%.
Also Check | Stock Market Live Updates: BSE Sensex, Nifty50 scale record highs
“All the exit polls indicate that the BJP will retain power, which is expected to lead to a positive reaction in the markets. However, given the election-related uncertainty, we may see a volatile session on Monday as the market reacts to the exit poll numbers and anticipates the final outcomes. Investors should be prepared for fluctuations but can remain optimistic about a potential rally if the final results align with the exit polls,” Dr. Ravi Singh, Senior Vice President- Retail Research at Religare Broking.
India’s economic growth accelerated to 8.2% in the financial year ending March 2024, supported by government spending on infrastructure and a thriving real estate sector, according to recent data. “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,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Analysts believe that if Modi secures a strong victory as indicated by the exit polls, he will have the political capital to pursue more challenging land and labor reforms. Investors also expect the Modi government to persist in its efforts to transform the country into a manufacturing hub, a project that has attracted foreign companies like Apple and Tesla to establish production facilities as they diversify their operations beyond China.
Also Read | Adani group stocks surf on Modi wave! Rs 1.4 lakh crore market cap added as exit polls predict NDA win
Global markets experienced gains, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.4% after a 2.5% decline last week. Chinese blue chips added 0.3%, while Japan’s Nikkei rose 1.1% and South Korea gained 1.8%. EUROSTOXX 50 futures climbed 0.9%, and FTSE futures increased by 0.7% as the risk-on sentiment spread.
Oil prices remained relatively stable on Monday as investors assessed OPEC+’s decision to extend deep output cuts well into 2025. Brent futures for August delivery were down 4 cents, or 0.05%, at $81.07 a barrel, while U.S. West Texas Intermediate (WTI) crude futures for July delivery slipped 1 cent, or 0.01%, to $76.98.
Foreign institutional investors (FIIs) turned net buyers on the last day of the month, purchasing Indian equities worth Rs 1,613.24 crore, while domestic institutional investors bought equities worth Rs 2,114.17 crore on May 31.
The Indian rupee strengthened by 42 paise against the US dollar in early trade, reaching 83, following exit polls suggesting a third term for Prime Minister Narendra Modi.

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