Stock market extends winning steak; PSU bank at new high
Sensex closed 487 points, or 0.66%, higher at 74,339.44 while the Nifty closed the day with a gain of 168 points, or 0.75%, at 22,570.35 on the monthly F&O expiry day.
Indian equity indices soared on a steady note on Monday as exit polls predicted a comfortable majority for the BJP-led NDA government in the Lok Sabha elections on Sunday. The Sensex gained more than 1,400 points to cross the 39,300 mark, while the NSE Nifty climbed 414.85 points from the previous close to hit an intraday high of 11,822.00.
Markets favour stable governments and until Sunday owing to uncertainty over the general elections, trading was marked by heavy volatility.
Top gainers on the 50-scrip index were Indiabulls Housing Finance, Larsen & Toubro, State Bank of India, ICICI Bank, Maruti Suzuki India and Mahindra & Mahindra
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Shares of State Bank of India (SBI) rose as much as 7.52 per cent to Rs 343.25, their highest since November 2017.
“Post the exit polls we can expect Nifty to again test its recent high before May 23. Fresh breakout into the 12,000 to 12,500 zone would depend on whether BJP gets majority on its own,” said Rusmik Oza, Head of Fundamental Research, Kotak Securities.
“If exit polls come true on May 23 then we can expect a structural up move in the mid and small cap space,” Oza added.
In early trade today, Sensex jumped over 950 points to 38,892 at day’s high while Nifty rose to 11,694.
The rupee rose to a two-week high of 69.36 against the US dollar, as compared to its Friday’s close of 70.23.
Most exit polls conducted by different organisations have given the BJP-led NDA full majority, even as opposition parties are dismissing these predictions.
The majority mark is 272.
The results of the polls will be declared on May 23.
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