Sensex, Nifty Surge as BJP Victory Prompts Reform Hopes

Sensex and Nifty surged to record highs after exit polls predicted a landslide victory for the BJP. Nifty 50 and Sensex both jumped nearly 3 percent, hitting all-time highs of 23,338.70 and 76,738.89, respectively.

“Exit poll results indicating a clear NDA victory with around 360 seats have eased the market’s election jitters,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

All 13 major sectoral indices climbed, with Nifty Energy, Nifty PSU Bank, and Nifty Realty leading the charge, each rising 4-5 percent. Nifty Pharma and Nifty Healthcare saw the smallest gains, with both indices increasing by 1.2 percent.

In the broader market, BSE Midcap gained nearly 4 percent, while BSE Smallcap added 2 percent. Top individual performers in early trade included Adani Ports, Shriram Finance, and Power Grid, each climbing 7-10 percent.

Adani Ports shares surged 10 percent after its subsidiary Adani International Ports Holdings Pte Ltd (AIPH) signed a 30-year concession agreement with the Tanzania Ports Authority to manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.

By 9:45 am, the Sensex was up 1,731 points or 2.3 percent at 75,692, and the Nifty 50 was up 537 points or 2.4 percent at 23,067. About 2,633 shares advanced, 571 shares declined, and 117 shares remained unchanged.

Excluding LTIMindtree and Eicher Motors, all Nifty 50 stocks gained.

“While we won’t be completely out of the woods until the official election results are announced, there’s renewed market confidence. The exit polls have significantly reduced uncertainty,” said Nirav Karkera, Head of Research at Fisdom.

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Market volatility observed in May is expected to subside after the election results are announced on June 4, according to experts. “Our markets remain vulnerable until the election outcome, with volatility likely to stay high during this time,” said Sameet Chavan, Head of Research, Technical and Derivative at Angel One. At 9:45 am, India VIX was down 21 percent at 19.3.

Post-election, analysts expect the market’s focus to shift to the first 100 days of the new government and the union budget.

India’s gross domestic product (GDP) for the January-March quarter of Q4FY24 came in at 7.8 percent, driven by robust growth in the manufacturing sector. The Indian economy outperformed D-Street estimates, growing by 8.2 percent for FY24. “The bulls will be further emboldened by the better-than-expected 8.2% GDP growth announced after market hours on Friday. Both technically and fundamentally, the market is poised for a rally,” Vijayakumar added.

“After a huge gap-up opening, Nifty can find support at 23,200 followed by 23,100 and 23,000,” said Deven Mehata, Research Analyst at Choice Broking. “On the higher side, 23,650 can be an immediate resistance, followed by 23,700 and 23,800,” he added.