The Indian stock market witnessed a remarkable surge on Monday, with the Nifty 50 and Sensex reaching all-time highs. The benchmark indices opened at a record high, with the nifty 50 crossing the 23,000 mark and the Sensex breaching the 76,000 mark. The significant upswing is attributed to a combination of factors, including the outcome of the exit polls predicting a potential hat-trick win for Prime Minister Narendra Modi and the release of India’s fourth quarter GDP data, which exceeded street estimates.
Nifty 50 and Sensex Reach New Heights
The Nifty 50, which is the flagship index of the National stock Exchange (NSE), opened at 22,568.10 closed at 23,110 on Monday, marking a significant increase of 541.35 points or 2.36% from the previous close. This milestone marks a new high for the index, which has been steadilu rising over the past few weeks,
The Sensex, which is the benchmark index of the Bombay Stock Exchange (BSE), also opened at a record high, crossing the 76,000 mark. The index rose by 500 points or 0.66% from the previous close, reaching a new peak of 7600.
Exit Polls Boost Market Sentiment
The exit polls, which predicted a potential hat-trick win for Prime Minister Narendra Modu, have significantly boosted market sentiment. The polls indicate a strong possibility of the Bharatiya Janata Party (BJP) securing a majority in the Lok Sbha elections, which has led to increased optimism among investors. This optimism has been reflected in the market, with the Nifty 50 and Sensex surging to new highs
GDP Data Exceeds Estimates
The release of India’s fourth-quarter GDP data, which showed a growth rate of 7.8% has also contributed to the market’s upwards trend. The data exceeded street estimates, indicating a strong economic performance. This positive economic news has further boosted investor confidence, leading to increased buying in the market.
Market Analysis
The market’s upward trend is expected to continue in the coming days, with analysts predicting a surge if the BJP secures victory in the elections. The Nifty 50 is likely to cross the 24,000 mark if the exit polls are accurate, and the Sensex could reach new heights as well.
Sector Performance
The market’s performance was led by strong gains in various sectors, including IT, healthcare, and banking. The IT sector saw significant gains, with stocks such as TCA and Infosys rising by over 2%. The healthcare sector also performed well, with stocks like Sun Pharma and Dr. Ready’s Laboratories rising by over 1.5% . The banking sector saw significant gains, with stocks like HDFC Bank and ICICI Bank rising by over 1.5%.
Conclusion
The Indian stock market has witnessed a remarkable surge, with the Nifty 50 and Sensex reaching new highs. The outcome of the exit polls and the release of GDP data have significantly boosted market sentiment, leading to increased optimism among investors. The market is expected to continue its upward trend in the coming days, with analysts predicting a surge if the BJP secures victory in the elections.