Enthused by exit poll predictions, Sensex, Nifty hit all-time high levels

Mumbai: Benchmark equity indices Sensex and Nifty surged nearly 4 per cent in early trade on Monday to hit their fresh all-time high levels after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.

The 30-share BSE Sensex jumped 2,777.58 points or 3.75 per cent to hit a record peak of 76,738.89 in early trade. The NSE Nifty rallied 808 points or 3.58 per cent to hit a fresh all-time high of 23,338.70. Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls. The counting of votes will take place on June 4.

All the 30-Sensex companies were trading in the green. Power Grid, NTPC, Larsen & Toubro, State Bank of India, Axis Bank, IndusInd Bank, ICICI Bank and Mahindra & Mahindra were the biggest gainers.

India’s economy grew by 8.2 per cent in the fiscal year that ended in March, cementing the country’s position as the fastest-growing major economy in the world.

In Asian markets, Seoul, Tokyo and Hong Kong were quoting with gains while Shanghai traded lower. US markets ended mostly higher on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday, according to exchange data. The BSE benchmark climbed 75.71 points or 0.10 per cent to settle at 73,961.31 on Friday. The Nifty advanced 42.05 or 0.19 per cent to end at 22,530.70.

Rupee opens stronger
The rupee surged 38 paise to hit its three-month high level of 83.04 against the US dollar in early trade 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.

At the interbank foreign exchange market, the local unit opened at 83.09 and gained further to trade at 83.04 against the greenback in initial deals, registering an increase of 38 paise from its previous close. The rupee had breached the 83-level on March 18. It clocked the highest single-day rise since April 2023 when it appreciated by 42 paise.
On Friday, the rupee declined 13 paise to close at 83.42 against the US dollar.