In 3 June 2024: Mumbai: Today’s trading session witnessed a remarkable surge in the Indian stock market, with benchmark indices Sensex and Nifty recording substantial gains fueled by optimistic sentiments following exit poll predictions. At 12:35 pm, Sensex surged by 2,313.25 points, marking a 3.13% increase to reach 76,246 points. Nifty also witnessed a significant uptick, climbing by 693.20 points or 3.08% to settle at 23,223.90.
The bullish trend extended to sectoral indices as well, with both the Nifty Bank and Financial Services indices registering gains exceeding 3.7%. Among individual stocks, Adani Ports emerged as the top gainer on the Nifty, soaring by 10.37%, followed closely by Power Grid which recorded a gain of 10.31%. Other notable gainers included SBI (9.09%), NTPC (8.55%), and Shriram Finance (7.24%).
Analysts attribute this robust market performance to the optimism generated by exit polls, which forecasted around 360 seats for the NDA in the upcoming elections, thus alleviating market uncertainties and bolstering investor confidence. Forecasts from Kotak Alternate Asset Managers suggest a bullish trajectory for the Nifty50, projecting it to reach 24,600 within the next year. However, analysts caution against potential froth in the midcap and smallcap segments.
Foreign portfolio investors, previously net sellers, are anticipated to shift their stance to become buyers, encouraged by strong GDP growth, manageable inflation rates, political stability, and expectations of the RBI easing its monetary policy.
In a significant milestone, the Nifty Bank breached the 50,000 mark for the first time during today’s trading session, propelled by the optimism surrounding exit poll predictions favoring a third term for Prime Minister Narendra Modi and his BJP party.
Banking stocks witnessed notable gains, with Bank of Baroda leading the pack with a 9% surge, followed by State Bank of India (SBI) at 7%. Axis Bank, IndusInd Bank, and Punjab National Bank (PNB) also recorded substantial gains exceeding 4%. Major players like Federal Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank observed increases ranging from 2% to 3%.
The positive market sentiment translated into a massive inflow of approximately Rs 12 lakh crore into the Sensex, driving it up by 2,600 points. This surge not only marks a historic achievement for the Nifty Bank but also underscores the optimistic outlook for the Indian banking sector.
Looking ahead, market participants remain cautiously optimistic, with expectations centered on continued stability and growth under a potential third term for the NDA government led by Prime Minister Modi. While the overall market sentiment plays a pivotal role, individual bank performances are also expected to influence market dynamics, particularly in sectors likely to benefit from government initiatives.
In summary, today’s market rally reflects investor confidence in the leadership and economic prospects, setting the stage for India’s potential emergence as a fast-growing, strong, and stable nation.
