Stock Market Hits Record Highs on Exit Poll Results, Investors Gain ₹ 12 Lakh Crore

The stock market experienced an extraordinary surge today, driven by exit poll predictions favoring political continuity and stability. Both the Sensex and Nifty indices achieved record highs, bringing substantial gains to investors.

Market Performance

In early trading, the 30-share Sensex soared over 2,000 points, while the 50-stock Nifty saw its largest jump in four years. This remarkable rally increased the market capitalization of BSE-listed stocks by ₹ 12.48 lakh crore. At the pre-open session, Nifty climbed 800 points (3.58%) to reach 23,227.90, and the Sensex jumped 2,621.98 points (3.55%) to hit 76,583.29. Notably, all stocks in both indices were in positive territory.

Top Performers

Leading the charge were Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC, which posted significant gains. The latest GDP data, indicating a robust 8.2% fiscal growth, further boosted market confidence.

Expert Insight

Varun Aggarwal, founder and managing director of Profit Idea, attributed the buoyant market sentiments to India’s impressive Q4FY24 GDP growth of 7.8%, which exceeded expectations. He also highlighted that the overall fiscal growth stood at 8.2%. However, he advised caution, noting that market volatility is expected ahead of the official election results.

Political Context

The surge in market optimism followed the predictions of 12 exit polls conducted on Saturday, which forecasted a victory for the ruling NDA alliance with 365 seats. A majority of at least 272 seats is required to form a government. Analysts emphasized that the market favors political stability, and changes in government typically introduce market volatility.

Regional Gains

The exit polls also suggested the BJP is poised to make significant inroads in southern states like Kerala and Tamil Nadu, as well as achieve substantial gains in eastern regions such as Odisha and Bengal. Despite these predictions, exit polls are not always accurate.

Opposition Response

While the BJP celebrated the exit poll results, the opposition dismissed them. Congress chief Mallikarjun Kharge, representing the INDIA bloc, expressed confidence that the bloc would secure at least 295 seats out of 543, suggesting a different outcome on the actual counting day.

In Conclusion, The market’s impressive performance today underscores the profound impact of political stability on investor confidence. As exit polls hint at continuity, the markets have responded with record-breaking gains, enriching investors by ₹ 12 lakh crore. However, with official results yet to be announced, investors should brace for potential volatility in the days ahead.