Jun3, 2024: Indian stocks soared to record highs on Monday following the release of exit polls indicating a decisive victory for Prime Minister Narendra Modi in the upcoming elections. The Nifty 50 index and S&P BSE Sensex Total Return index both surged by over 3% during intraday trading.
According to data from LGEG, both indices reached unprecedented levels, marking their most significant intraday gains since February 1, 2021.
Over the weekend, local exit polls indicated that Prime Minister Modi and his Bharatiya Janata Party-led alliance were poised for an exceptional third consecutive term in power. The BJP-led National Democratic Alliance is anticipated to secure approximately 365 out of the 543 seats in the lower house of India’s parliament, as per NDTV’s exit poll summary. However, it’s worth noting that final results, slated for release on Tuesday, may diverge from these exit poll projections.
Investor optimism was further fueled by expectations that the incoming government would prioritize infrastructure development in India. Consequently, shares of Adani Group companies experienced significant gains following the release of the exit poll results. Adani Ports surged by more than 10%, while Adani Enterprises climbed 7%. Additionally, Ambuja Cement, one of India’s foremost cement producers, saw an increase of almost 6%.
Commenting on the situation, Malcolm Dorson, a senior portfolio manager and head of emerging markets strategy at Global X, remarked, “We will see a continued infrastructure buildout in housing, transportation, and on the digital side.”
