Exit polls make investors richer by ` 5.33 lakh crore

NSE Nifty surges over 421 points to log its best single-day gains in over 10 years

MUMBAI: With most of Sunday’s exit polls predicting victory for the Narendra Modi-led National Democratic Alliance (NDA) Government in the just concluded Lok Sabha elections, investor wealth on Monday soared by Rs 5,33,463.04 crore in the Bombay Stock Exchange (BSE). At the end of Monday’s trading session, the market capitalisation of Bse-listed companies stood at Rs 1,51,86,312.05 crore against Rs 1,46,58,709.68 crore on Friday.

This is the third consecutive session of gain for domestic stocks and in these three trading sessions, the market capitalisation of Bselisted companies has jumped by Rs 7.48 lakh crore. The BSE Sensex zoomed past the 39,300 mark, up by over 1,422 points, while the National Stock Exchange’s (NSE) Nifty reclaimed the 11,800 level on Monday as investors cheered the outcome of the exit polls that predicted a clear majority for the ruling Bharatiya Janata Party (Bjp)-led NDA.

Barring Bajaj Auto and Infosys, all the Sensex scrips settled with gains. Analysts believe Modi’s BJP retaining power would ensure a continuation of the pro-business reform measures initiated during the NDA’S first term.

“What would help the markets sustain momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation

and re-organisation of the banking system,” said Emkay Wealth Management Head of Research Joseph Thomas.

The rupee appreciated by 49 paise, the biggest single-day gain in two months, to close at 69.74 against the dollar on Monday, following sharp gains in equities and forex inflows.

At the interbank foreign exchange, the domestic unit opened at 70.36 and advanced to a high of 69.44 during the day.

The 10-year bond yield was at 7.29 per cent as compared with Friday’s close of 7.36 per cent. The counting of votes will take place on May 23.

Analysts believe a 2nd Modi term will ensure a continuation of biz-friendly economic reforms initiated in his first term

MUMBAI: Riding a wave of optimism, the Sensex Monday vaulted 1,422 points to close at a record 39,352.67 as investors cheered the exit polls predicting a clear mandate for the Narendra Modi-led NDA in the Lok Sabha elections.

The NSE Nifty surged over 421 points to log its best single day gains in over 10 years.

The 30-share BSE gauge also registered its biggest oneday rise in the last six years.

The market capitalisation of Bse-listed companies jumped by Rs 5,33,463.04 crore on Monday.

As of Monday's close, total valuation of Bse-listed companies stood at Rs 1,51,86,312.05 crore.

A majority of exit polls have predicted a clear majority for the Bjp-led National Democratic Alliance (NDA), which is expected to win over 300 seats in the parliament election. The counting of vote will take place on May 23.

Analysts believe the Modi's BJP retaining power will ensure a continuation in reform measures initiated during the NDA'S first term.

The market rally on Monday was broad-based, with financials leading from the front.

Among the Sensex constituents, Indusind Bank, SBI, Tata Motors, Yes Bank, LT, HDFC, Maruti and ONGC emerged as the top gainers -- surging as much as 8.64 per cent.

Barring two stocks Bajaj Auto and Infosys, all Sensex scrips ended in the green.

After a big gap-up opening, the Sensex closed 1,421 points or 3.75 per cent higher at 39,352.67. During the day, the gauge hit a high of 39,412.56 and a low of 38,570.04.

The NSE Nifty settled at 11,828.25, up 421 points or 3.69 per cent -- posting its all-time closing high.

Indian stock market also outperformed its Asian peers on Monday.

The broader BSE midcap and smallcap indices ended in line with benchmarks, rallying up to 3.57 per cent.

"The domestic equity markets witnessed unprecedented and remarkable surge, across all sectors and segments, after the exit polls indicated a higher probability for the current dispensation to come back to power with a clear majority," said Joseph Thomas, Head Research- Emkay Wealth Management.

"What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation and re-organisation of the banking system," he added.

Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.

Tracking overall positive sentiment, the Indian rupee on Monday jumped 49 paise to close at a nearly two-week high of 69.74 against the US dollar.

Brent crude, the global benchmark, was trading at 72.61 per barrel, higher by 1.40 per cent.

Globally, bourses in Asia ended on a mixed note, while those in Europe were trading in the red in their respective early deals.

Commenting on domestic cues, HDFC Securities MD and CEO Dhiraj Relli said, "Indian markets expectedly cheered the outcome of the exit polls and Nifty registered its largest point gains since Jan 25, 2009. Nifty is just shy of all-time high of 11,856 but has nevertheless closed at its all-time closing high."