Markets euphoric as exit polls predict Modi's victory
Sensex soars 1,422 pts; Nifty closes at all time high of 11,828
Mumbai: Indian equities on Monday posted their biggest single-day gains in over six years, the rupee saw its best day in two months and government bond prices surged after exit polls predicted a clear mandate for the Narendra Modi-led NDA in the Lok Sabha elections.
The BSE Sensex vaulted 1,422 points to close at a record 39,352.67 -- the biggest one-day rise in the last six years.
The NSE Nifty surged over 421 points to log its best single day gains in over 10 years.
The Indian rupee appreciated by 49 paise, the biggest single-day gain in two months, to close at 69.74 against the $ following sharp gains in equities and forex inflows.
At the interbank foreign exchange, the domestic unit opened at 70.36 and advanced to a high of 69.44 during the day. The 10-year bond yield was at 7.29 per cent as compared with Friday's close of 7.36 per cent.
A majority of exit polls have predicted a clear majority for the BJP-led National Democratic Alliance (NDA), which is expected to win over 300 seats in the parliament election. The counting of vote will take place on May 23.
Analysts believe the Modi's BJP retaining power will ensure a continuation in reform measures initiated during the NDA's first term.
The market rally on Monday was broad-based, with financials leading from the front. Among the Sensex constituents, IndusInd Bank, SBI, Tata Motors, Yes Bank, LT, HDFC, Maruti and ONGC emerged as the top gainers -- surging as much as 8.64 per cent.
Barring two stocks Bajaj Auto and Infosys, all Sensex scrips ended in the green. After a big gap-up opening, the Sensex closed 1,421 points or 3.75 per cent higher at 39,352.67.
During the day, the gauge hit a high of 39,412.56 and a low of 38,570.04. The NSE Nifty settled at 11,828.25, up 421 points or 3.69 per cent -- posting its all-time closing high.
Indian stock market also outperformed its Asian peers on Monday. The broader BSE midcap and smallcap indices ended in line with benchmarks, rallying up to 3.57 per cent.
"The domestic equity markets witnessed unprecedented and remarkable surge, across all sectors and segments, after the exit polls indicated a higher probability for the current dispensation to come back to power with a clear majority," said Joseph Thomas, Head Research- Emkay Wealth Management.