In an unprecedented surge, the Indian stock market witnessed a massive jump in early trade today, bolstered by the hopeful anticipation of political stability as predicted by exit polls. The 30-share Sensex rallied over 2,000 points this morning, while the 50-stock Nifty recorded its largest leap in four years during the market opening.
Both the Sensex and Nifty, the benchmark indexes of the Bombay Stock Exchange and the National Stock Exchange respectively, soared to record high levels. All stocks listed on the Sensex and Nifty are currently trading in the green.
During pre-open trading, the Nifty surged over 800 points or 3.58% to reach 23,227.90, while the Sensex jumped 2,621.98 points or 3.55% to 76,583.29.
Top performers leading this market rally include Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC, all registering significant gains. The upbeat market sentiment was further buoyed by the latest GDP data indicating a robust 8.2% fiscal growth.
Commenting on the market dynamics, 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, Aggarwal cautioned that the market could remain volatile in anticipation of tomorrow’s election results.
Exit polls conducted on Saturday predicted that the BJP is poised to return to power with the ruling NDA alliance securing 365 seats. This projection was welcomed by the BJP but dismissed by the Opposition, which expressed confidence in securing victory on counting day.
While the BJP celebrated the exit poll predictions, Opposition leaders, including Congress chief Mallikarjun Kharge, emphasized the unpredictability of exit polls and expressed optimism regarding their electoral prospects.
Despite the anticipation and excitement surrounding the exit poll predictions, market analysts cautioned that outcomes on counting day could bring unforeseen volatility. Nevertheless, today’s market surge reflects investor optimism linked to the prospect of political stability in the country.