Sensex-Nifty close at record highs, on eve of poll results
Jun 03, 2024
Mumbai (Maharshtra) [India], June 3 : Indian benchmark indices closed at record highs on Monday, driven by fresh buying from investors after exit polls indicated a comfortable majority for the NDA government.
The Nifty 50 index gained 733.20 points, closing at 23,263.90, while the BSE Sensex surged 2507.47 points to close at 76,468.78.
During the trading session, Nifty 50 touched an all-time high of 23,338.70, and the Sensex reached a record high of 76,738.89.
The Bank Nifty Index also reached a new all-time high of 51,133.20, led by banking giants such as Bank of Baroda and State Bank of India.
The sectoral indices, including PSU Banks and oil and gas, saw significant gains, with the former surging by 8.31 per cent and the latter by 6.82 per cent.
"Equity markets jumped in line with expectations of a development-driven agenda, with the Nifty scaling a new record high. Additionally, the India VIX index, which measures market volatility, has cooled down post the exit poll numbers," said Pranav Haridasan, MD and CEO of Axis Securities.
In the NIFTY 50 index, by the time of closing, 43 stocks advanced while 7 declined. The top gainers in the Nifty 50 list included Adani Ports, SBI, NTPC, Power Grid, and ONGC. On the other hand, the top losers were Eicher Motors, LTI Mindtree, HCL Tech, Sun Pharma, and Asian Paints.
"PSUs space will remain exciting, but investors need to be more choosy and look for relative values. Long-term trajectory for markets looks very positive, though short-term volatility could continue to remain high as it is not exactly cheap," said Porinju Veliyath, Founder of Equity Intelligence.
During the opening session on Monday, the Sensex surged by 1859.88 points to a record 75,821.19. Similarly, the Nifty jumped 603.85 points, starting the day at 23,134.55.
Notably, all 50 companies in the Nifty index saw advances, marking a rare and robust market performance on Monday.
The overall market sentiment was buoyed by the exit polls' prediction of a decisive victory for the NDA, which is expected to continue its development-driven policies.
The positive outlook, combined with cooling market volatility as indicated by the India VIX, has contributed to the optimistic environment for investors, despite the potential for short-term fluctuations.
