Nagpur : Domestic stock markets soared on Monday with the Sensex gaining more than 1,400 points, a day after exit polls predicted that the Bharatiya Janata Party led National Democratic Alliance (NDA) will win almost as many seats as it did in 2014 and form a government comfortably.
The S&P BSE Sensex surged as much as 1,405.89 points or 3.71 per cent to reclaim the 39,300 mark, and the NSE Nifty climbed 414.85 points from the previous close to hit an intraday high of 11,822.00. Advances in financials, auto, energy and metal stocks supported the strong up move in the equity markets. Analysts said the current rally could be short-lived before election results are declared on Thursday.
Here are 10 things to know :
1) At 2:30 pm, the Sensex traded 3.39 per cent or 1,285.04 points higher at 39,215.81 and the Nifty was up 377.75 points or 3.31 per cent, at 11,784.90.
2) Top gainers on the 50-scrip index at the time were Indiabulls Housing Finance, State Bank of India (SBI), Adani Ports, Grasim Industries, HDFC and IndusInd Bank, trading between 5.06 per cent and 7.35 per cent higher.
3) HDFC, Reliance Industries and HDFC Bank contributed the most to the advances on Sensex.
4) Some analysts expect a rally in the markets till the election results due on Thursday.
5) “Any movement in the markets till election results will depend on the positions investors have taken. If there is a huge short position, a rally may be on the cards but it will be short-lived since valuations are not cheap at present,” AK Prabhakar, IDBI Capital, told us.
6) The poll of polls, an aggregate of exit polls, gives the BJP-led National Democratic Alliance (NDA) 302 of 543 seats. (Read more: NDA to form government comfortably, predicts poll of polls)
7) “A stable government will be best for the markets,” he said.
8) Equities in other Asian markets were steady as investors tried to catch their breath following another week of escalating trade tensions between the US and China. MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.6 per cent in early trade, after a 3 per cent loss the previous week. Japan’s Nikkei index added 0.4 per cent, after data showed growth in the world’s third-biggest economy unexpectedly accelerated in the first quarter.
9) The rupee appreciated to 69.44 against the dollar in intraday trade, marking a gain of 79 paise compared with the previous close.
10) The Nifty had risen 128.25 points – or 1.14 per cent – last week, and the Sensex added 467.78 points (1.25 per cent).
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