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Indian stock market surges after Modi's re-election

05:24 PM Jun 05, 2024 IST | NE NOW NEWS
UpdateAt: 05:24 PM Jun 05, 2024 IST
indian stock market surges after modi s re election
Sensex hits record high after exit poll predicts BJP-led NDA's win in Lok Sabha on June 3
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Guwahati: Indian shares surged on Wednesday after key allies pledged their support to Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) for a new government.

Following reports of Modi's resignation to pave the way for a third term, the BSE Sensex soared over 3.2% to close at 74,382.

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The Nifty 50 also jumped over 3.3%, closing above 22,600.

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Analysts attribute this rally to positive sentiment surrounding a stable government.

The report comes after a narrow election victory for the BJP-led alliance.

Several major companies witnessed significant gains, with IndusInd Bank, M&M, Tata Steel, and Axis Bank leading the pack.

Notably, all 30 companies in the Sensex index rose, except for Larsen & Toubro.

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Enthusiasm extended beyond the top companies, with broader markets like the BSE MidCap and SmallCap indices rising over 4% and 2.9%, respectively. Additionally, the India VIX, a volatility gauge, dropped by 29%, indicating a calmer market.

The rally was particularly strong in sectors like metals and private banking, with both Nifty indices in these sectors surging over 5%.

The Nifty Bank and Auto indices also saw significant gains of over 4% each.

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