Sensex hits record high after exit poll predicts BJP-led NDA's win in Lok Sabha
Guwahati: Following the exit polls predicting a victory for the BJP-led NDA in the Lok Sabha elections, investors' wealth surged by Rs 12.48 lakh crore as the benchmark equity index Sensex reached an all-time high.
Reports indicate that the 30-share BSE Sensex jumped by 2,777.58 points, or 3.75%, hitting a record peak of 76,738.89 during early trading.
This substantial rally led to a rise in the market capitalisation of BSE-listed companies, which increased by Rs 12,48,952.68 crore, reaching a new high of Rs 4,24,61,833.82 crore ($5.10 trillion) during morning trade.
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Exit polls released on June 1 projected that Prime Minister Narendra Modi would secure a third consecutive term, with the BJP-led NDA expected to achieve a significant majority in the Lok Sabha elections. Vote counting is set for June 4.
"The exit poll numbers strongly favour the incumbent government," stated Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers. "Overall, the outlook is positive for the markets both in the short and long term. Furthermore, the recently released favourable GDP growth data should reinforce the existing positive momentum."
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India's economy grew by 8.2% in the fiscal year ending in March, reaffirming its position as the fastest-growing major economy in the world. "The GDP numbers released on Friday surpassed expectations with an 8.2% growth. This will provide essential support to the market," remarked VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
All 30 Sensex companies traded positively, with Power Grid, NTPC, State Bank of India, Larsen & Toubro, Mahindra & Mahindra, IndusInd Bank, and Axis Bank being the top gainers.