Indian equities hit record highs in opening deals on Monday on the back of exit polls, which indicate a clear victory for Prime Minister Narendra Modi-led NDA government in 2024 Lok Sabha elections.
The BSE Sensex zoomed 2,622 points, or 3.5 per cent, to hit new lifetime high of 76,583 levels, while the NSE Nifty50 climbed 807 points to 23,337 levels.
All the stocks were in the green on the Sensex led by Power Grid, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement. These stocks were up in the range of 3 per cent to 7 per cent.
In the broader markets, Nifty SmallCap rose 2.73 per cent while MidCap jumped 2.5 per cent.
Sectorally, the broad-based rally was led by Nifty PSU Bank index (up 5 per cent), Nifty Realty (4 per cent), and Nifty Bank (3 per cent).
Stock Market View | Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Fundamentals, technicals and sentiments turning favourable at the same time is rare in the market. This is what has happened now. The market went into the big event, elections, very light with Nifty correcting around 600 points from the May highs. Profit booking also happened on a large scale. The short position in the market also is high. All these are going to change dramatically. DIIs, HNIs, and retail are all going to turn buyers. Short-covering can add to the momentum.
The rally is likely to be led by largecaps. Stocks like RIL, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L&T, M&M, Tata Motors, Bajaj Auto, Eicher Motors are fundamentally strong largecaps with potential to lead the rally. IT stocks like TCS, Infy, HCL Tech, Coforge, Persistent and L&T Tech offer contrarian buying opportunities.
The GDP numbers which came on Friday were better than expected with 8.2% growth. This will provide fundamental support to the market. S&P’s upward revision of India’s rating outlook also is positive.
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