After exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls, investors' wealth jumped Rs 12.48 trillion in morning trade on Monday as the benchmark equity index Sensex hit its lifetime high.
To hit a record peak of 76,738.89 in early trade, the 30-share BSE Sensex jumped 2,777.58 points or 3.75 percent. Furthermore, following the huge rally in equities, the market capitalisation of BSE-listed companies climbed Rs 12,48,952.68 crore. This showcased an all-time peak of Rs 4,24,61,833.82 crore (USD 5.10 trillion) if we speak of the morning trade.
So, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls, exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term.
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"The exit poll numbers are very strong for the incumbent government," Narendra Solanki, Head Fundamental Research - Investment Services.
Furthermore, Anand Rathi Shares and Stock Brokers stated, “Overall it's positive for the markets in short as well as long term. Also, the recently released good GDP growth data should provide support to existing positive momentum.” So, cementing the country's position as the fastest-growing major economy in the world, India's economy grew by 8.2 per cent in the fiscal year that ended in March.
"The GDP numbers which came on Friday were better-than-expected with 8.2 per cent growth. This will provide fundamental support to the market," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Today, we witnessed all 30 Sensex companies trading in the green; here, NTPC, Power Grid, Larsen & Toubro, State Bank of India, Mahindra & Mahindra, IndusInd Bank and Axis Bank were the ones who topped the charts from the Sensex pack.
And if we look at the Asian markets, while Shanghai traded lower, Seoul, Tokyo and Hong Kong were quoting with gains. Last Friday, US markets ended mostly on the higher side. Moreover, according to exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday.
