Stock Markets Welcome Larger Majority For NDA In Exit Polls With Style, Indices End At Lifetime Highs
Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
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By Sunil Garodia
First publised on 2024-06-03 15:26:00
About the Author
Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
View all posts by this Author
Unlike politicians
(on the losing side), the media, political commentators and the general public,
it seems that the stock market does not take the exit polls with a pinch of
salt. Hence, despite the 'health' warning that such polls are not always
correct and may even go horribly wrong at times, the Indian stocks markets
witnessed a strong and broad-based rally on Monday, the first day the market
opened after the exit polls were declared on completion of the last phase of
voting on Saturday, June 1. On expectation of policy continuity, market
stability and further reforms if NDA wins with the huge margin predicted by
exit polls, the Sensex ended 2507 points higher and the Nifty was up by 733 points. Experts
had predicted that there will be a strong rally on Monday but the fervour with
which the bulls went after the scripts surprised even the most optimistic of
the commentators. It was the single-largest gain for the markets in three
years.
The markets
opened strongly (Sensex opened at 76583, 2622 points higher than its Friday
closing and although there was profit-taking at higher levels and some
volatility, it never dipped below 75600 points in the entire trading session.
All sectoral indices were in the plus with both Sensex and Nifty closing at
all-time highs. Another big reason for the huge rally was the fact that GDP
figures for FY24 surpassed all expectations signalling that the economy was
doing much better than expected. The twin reasons saw the bears beating a hasty retreat and the bulls getting a firm grip on the market.
The very fact that even though there was profit-taking at higher levels, the
markets sustained their initial momentum shows that there were buyers even at
the higher levels. This is good for the market as, if the results mirror the
exit polls, the rally is likely to continue for a couple of trading sessions. And if the NDA crosses the 400 mark, the Sensex may even cross 78000 and may even
go as high as 79000. But retail investors are advised to exercise caution and
apply their best judgment before entering the markets at these high levels.
