Closing Bell: Indian Shares Surge to Record Highs on Modi's Projected Third Term
Indian shares soared to record highs on Monday after exit polls projected a third term for Prime Minister Narendra Modi’s government. The Nifty 50 surged by 3.58% and the Sensex gained 3.55%, marking their best intraday gains since February. This rally saw all major sectors rise, with significant gains in small- and mid-cap stocks.
Despite the historically mixed accuracy of exit polls, the projection of a likely two-thirds majority for the ruling party boosted market sentiment.
Trade Highlights:
Sensex and Nifty at all-time high levels
Nifty registers biggest gap-up opening in 4 years
Nifty Bank crosses 50,000 for the first time
Volatility index India Vix drops 19%
Investors add Rs 11 lakh crore to wealth
Adani stocks soar up to 16%
Kronox Lab IPO opens for subscription
SBI crosses Rs 8 lakh crore market cap
Dr V K Vijayakumar of Geojit Financial Services remarked, The convergence of favourable fundamentals, technical, and sentiments is rare in the market. This scenario played out with the market entering the elections lightly, with the Nifty correcting around 600 points from May highs and significant profit booking.
The high short position is expected to shift dramatically, with DIIs, HNIs, and retail investors turning buyers. Short-covering will add to the momentum, likely leading a rally spearheaded by large-cap stocks.
