Market rides exit polls euphoria; Sensex soars 1,422 pts

Monday, 20 May 2019

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.

MUMBAI: Riding a wave of optimism, the Sensex on Monday vaulted 1,422 points to close at a record 39,352.67 as investors cheered the exit polls predicting a clear mandate for the Narendra Modi-led NDA in the Lok Sabha elections.

The NSE Nifty surged over 421 points to log its best single day gains in over 10 years.

The 30-share BSE gauge also registered its biggest one-day rise in the last six years.

The market capitalisation of BSE-listed companies jumped by Rs 5,33,463.04 crore on Monday.

As of Monday's close, total valuation of BSE-listed companies stood at Rs 1,51,86,312.05 crore.

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.

"What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation and re-organisation of the banking system," he added.

Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.

Tracking overall positive sentiment, the Indian rupee on Monday jumped 49 paise to close at a nearly two-week high of 69.74 against the US dollar.

Brent crude, the global benchmark, was trading at 72.61 per barrel, higher by 1.40 per cent.

Globally, bourses in Asia ended on a mixed note, while those in Europe were trading in the red in their respective early deals.

Commenting on domestic cues, HDFC Securities MD and CEO Dhiraj Relli said, "Indian markets expectedly cheered the outcome of the exit polls and Nifty registered its largest point gains since Jan 25, 2009. Nifty is just shy of all-time high of 11,856 but has nevertheless closed at its all-time closing high." 

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