Stock market exit poll rally adds Rs 12 lakh crore

Ira Singh
Khabar Khabaron Ki,03 June’24

India’s growth continues to surprise on the upside following exit polls projecting a third term for Prime Minister Narendra Modi’s government.According to estimates,India’s gross domestic product (GDP) for the January- March quarter of Q4FY24 grew at 7.8 percent, driven by positive growth in the manufacturing sector.

Nifty 50 jumped 3.58% and the Sensex gained 3.55%, reached all-time highs on Monday, with the best intraday gains since February. At close,the Sensex was up 2507.47 points or 3.39 percent at 76,468.78, and the Nifty was up 733.20 points or 3.25 percent at 23,263.90.

Highlights from trade:
●Sensex, Nifty at all-time high levels,
●Nifty registers biggest gap-up opening in 4 years,
●Nifty Bank crosses 50,000 for first time
●Volatility index India Vix drops 19%,
●Investors add Rs 11 lakh crore to wealth,
●Adani stocks zoom up to 16%,
●Kronox Lab IPO opens for subscription,
●SBI crosses Rs 8 lakh crore m-cap.

Adani Ports, NTPC, SBI, Power Grid Corp and ONGC were the top gainers on the Nifty, while losers included Infosys, LTIMindtree, HCL Technologies, Nestle and Dr Reddy’s Laboratories.

On the sectoral front,all the sectoral indices ended in the green with capital goods, PSU Bank, oil & gas, power and realty up 5-8 percent.The BSE midcap index rose 3.5 percent while smallcap index added 2 percent.The polls, indicating a likely two-thirds majority for the ruling party, boosted market sentiment despite their historically mixed accuracy.

Rupee Close:
On 03 June’34,the Indian rupee appreciated 32 paise to 83.14 against the US dollar on Monday,boosted by a robust sentiment in domestic equity markets on the back of strong macroeconomic data and exit poll results showing a third term for the Prime Minister Narendra Modi-led government.

A weak American currency and inflow of foreign capital into domestic equities also supported the local unit, forex traders said.

Trading Guide:
According to experts,the strong momentum in growth is a major development after the April policy that would prompt RBI to retain the status quo.The Indian economy outperformed D-Street estimates, growing by 8.2 percent for FY24. The bulls will be further strengthened by the better-than-expected 8.2% GDP growth, which was announced after market hours on Friday. Both technically and fundamentally, the market is poised for a rally, believe experts.

Market experts have recommended five stocks to buy or sell today — JKIL, Symphony, Federal Bank, Tata Motors, and ITC