Indian stock market explodes
The Indian stock market has overcome election-related anxieties as opinion poll results predict the return to power of the NDA led by BJP with a significant majority.
Sensex opened higher with 2,622 points at 76,583.29 compared to the previous close and set a new record after rising by 2,778 points to reach 76,738.89. The 30-share pack finally closed with a hefty gain of 2,507 points, reaching 76,468.78, and bathed in the green of 25 stocks.
Compared to the previous close of 22,530.70, Nifty 50 has opened higher by 807 points at 23,337.90 , a rise of 3.6%, to establish a new record high of 23,338.70 in early trading.
Investors continued to trade actively across all segments, and both the midcap and the smallcap indices also reached new record highs, each rising by nearly 4%.
Nearly 300 stocks, including SBI, ICICI Bank, Axis Bank, Bharti Airtel, Larsen, Toubro, Mahindra, Mahindra, NTPC and Power Grid, hit new 52 weeks highs in day trading on BSE on Monday.
While the poll results were the primary catalyst, experts have identified 3 additional factors that could strengthen market sentiment.
“Nifty has opened with a gap up primarily on the back of the exit poll numbers indicating a clean sweep for the BJP-led NDA government for the third time in a row. Apart from this, there were few other things which pushed the index higher like better-than-expected GDP numbers, the strong pullback in US markets on Friday, the arrival of monsoon and a reduction in fiscal deficit,” said Apurva Sheth, director of Research and Market Outlook, SAMCO Securities.
He also said that: “The medium-term target in Nifty is around 24,500”.
