After the Lok Sabha exit polls predicted a landslide victory for the BJP, a day before the counting and announcement of the results, the stock market surged by over 3% on Monday.
Both the indices hit their fresh record highs, jumping almost 4%, and ended at their fresh dosing highs with gains of over 3% each.
Investors’ wealth jumped to Ps 12.48 trillion in Momingtrade on Monday. Sensex opened at 76.583.29, 2,622 points higher than its previous close, and surged 2,778, or 3.8%, to hit its fresh record high of 76,738.89. It finally closed with a hefty gain of 2.507 points, or 3.39%, at 76/458.78.
On the other hand, Nifty 50 traded 807 points higher at 23,337.90 and rose 808 points, or 3.6%, to hit its fresh record high of 23,338.70 in early deals.
The index closed at 23,263.90, up 733 points, or 3.25%.
. Among the sectors, all ended with gains. The Nifty PSU Bank index surged 8.40%, followed by Nifty Oil & Gas by 6.81% and Nifty Realty by 5.95%. Nifty Bank surged 4.07%, while the Financial Services and Private Bank indexes jumped 4.04% and 3.34%, respectively. The mid-cap and small-cap indices also reached fresh record highs during the session. The BSE Midcap Index hit its fresh all-time high of 44560.97 during the session and closed 3.54% higher at 44,367.67.
The BSE Smallcap index hit its fresh record high of 48,973.96 during the session and finally settled with a gain of 2.05% at 48,232.30. Further, the volatility index, India VIX, crashed 15% to come back to the level of 20.94. On the Nifty 50, the gainers were Adani Ports (10.62%), SBI (9.48%), NTPC (9.33%), Power Grid (9.03%), and ONGC (7.43%). However, the losers were Eicher Motors (1.34%), LTI-Mindtree (1.12%), HCL Tech (0.57%), Sun Pharma (0.32%), Asian Paints (0.22%), Britannica (0.19%), and Dr. Reddy’s Labs (0.03%).
Ahead of the election results, the PSU indices also jumped to fresh highs.
The Nifty PSE index climbed over 5% to a record high, with HPCL, Power Grid, REC, and PFC each rallying over 6% in early morning trade. The Nifty PSU Bank index raced ahead of both the private bank and Bank Nifty indices, rising 4.5% to a fresh record in early morning trade. Bank of Baroda, SBI, and Indian Bank were the top gainers in the public bank index. The railway stocks also surged by over 13%. Rail Vikas Nigam Limited (RVNL) saw an increase of 11%, while the Indian Railway Finance Corporation (IRFC) surged by 12.5%.