Indian stock market cheers exit poll predictions of BJP victory; Sensex, Nifty at record highs

Stock market indices Sensex and Nifty opened at their record high levels on Monday as exit polls suggested a 3rd consecutive win for the BJP led NDA. At the opening Sensex recorded 76,583, trading a whopping 2621 points or 3.55% higher. Similarly, Nifty 50 inched 3.58%, or 807 points higher at 23,337

At pre-open the Nifty surged to 23,337.90, higher by 807.20 points or 3.58% and the Sensex jumped to 76,583.29, up by 2,621.98 or 3.55%.

Stock market surge

Indicating a strong bull, the GIFT Nifty advanced 850 points, or 3.75% higher at 23,538. Rupee also opened on a stronger note on Monday surging 42 paise to 83.00 against US dollar in early trade.

Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with BJP-led NDA winning anywhere between 350-401 seats.

As per VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the volatility seen throughout May will stabilise as the exit poll results indicate a clear victory for NDA. He further added that the bulls will be emboldened by the better-than-expected 8.2% growth in GDP numbers for FY24.

“Exit polls results, which indicate a clear victory for the NDA with around 360 seats, completely removes the so-called election jitters which have been weighing on markets in May. This comes as a shot in the arm for the bulls who will trigger a big rally in the market on Monday,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Meanwhile, Santosh Meena, Head of Research, Swastika Investmart Ltd told Indian Express that negative surprise from actual results might trigger a knee-jerk reaction in the market.

“The market is approaching the event with caution, and the positive surprise from exit polls can lead to a rally as majority of the exit polls are giving 350+ seats to the NDA. Conversely, a negative surprise from actual results might trigger a knee-jerk reaction in the market,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Also watch: Exit poll results: Stock market may correct 20% if NDA loses, says Kotak