Sensex Soars to Record High on Exit Poll Predictions

Investors' wealth surged by ₹13.78 lakh crore as the Sensex hit a record high driven by exit polls predicting a BJP-led NDA victory in the Lok Sabha polls. The Sensex experienced a sharp rally of 2,507.47 points, marking a significant climb in market capitalization and pushing the equity markets to new heights.

Investors' wealth surged by ₹13.78 lakh crore on Monday after the benchmark equity index, Sensex, hit its lifetime high driven by exit polls predicting a massive win for the BJP-led NDA in the Lok Sabha elections.

The 30-share BSE Sensex jumped by 2,777.58 points, or 3.75%, to reach a record peak of 76,738.89 during early trade. Eventually, it concluded at 76,468.78, marking an impressive rally of 2,507.47 points, or 3.39%. This rally raised market capitalization of companies listed on BSE by ₹13,78,630.4 crore to an unprecedented peak of ₹4,25,91,511.54 crore (USD 5.13 trillion).

Following exit polls on Saturday predicting Prime Minister Narendra Modi's third consecutive term with BJP-led NDA winning a strong majority in the Lok Sabha polls, investors responded with optimism about policy continuity.

'Today, the Indian stock market responded positively due to optimism about policy continuity,' said Pranav Haridasan, Managing Director and Chief Executive Officer of Axis Securities. 'Equity markets surged in line with expectations of a development-driven agenda, with Nifty scaling a new record height,' he added.

The India VIX index, a measure of market volatility, which had spiked in the past month, cooled down post the exit poll results, further contributing to market stability. India's economy, growing by 8.2% in the fiscal year ending March, fortified its position as the world's fastest-growing major economy.

'If the exit poll outcomes are confirmed in the actual election results, we could witness further gains, with Nifty possibly advancing towards 23,500 and Sensex approaching 77,000,' opined Santosh Meena, Head of Research at Swastika Investmart Ltd.

Among the 30 Sensex companies, NTPC and State Bank of India soared over 9% each, while Power Grid also saw a near 9% jump. Other significant gainers included Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank, and Tata Steel, whereas HCL Technologies, Sun Pharma, Asian Paints, Nestle, and Infosys lagged behind.

In the broader market, the BSE midcap gauge climbed 3.54% while the smallcap index jumped 2.05%, hitting their all-time peaks intraday. A total of 2,346 stocks advanced, 1,615 declined, and 154 remained unchanged on the BSE.

Global sentiments also played a part with gains in Seoul, Tokyo, and Hong Kong markets, while Shanghai ended lower. European markets traded with gains and US markets closed mostly higher on Friday. Foreign Institutional Investors (FIIs) bought equities worth ₹1,613.24 crore on Friday, as per exchange data.