Stock Market Soars After Exit Polls Predict Significant BJP Victory
India’s Stock Market experienced a significant upswing, with the Sensex rising over 2,000 points and the Nifty marking its largest increase in four years during the market’s opening on Monday. This surge is attributed to optimism surrounding political stability, as indicated by exit poll predictions. Both the Sensex and Nifty, representing the Bombay Stock Exchange and the National Stock Exchange, respectively, reached historic highs. All stocks in these indexes are currently showing positive growth.
At the time of pre-open trading, the Nifty surged by over 800 points (3.58%) to reach 23,227.90, while the Sensex saw a jump of 2,621.98 points (3.55%) to hit 76,583.29. Leading the market rally are companies like Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC, which posted significant gains. The positive sentiment in the market was further reinforced by the latest GDP data, showing a robust fiscal growth of 8.2% in Q4FY24.
According to the reports, Varun Aggarwal, founder and managing director of Profit Idea, noted, “Buoyant sentiments are driven by India’s impressive Q4FY24 GDP growth of 7.8 per cent, surpassing expectations, with the fiscal year’s growth standing at 8.2 per cent.” However, he cautioned about potential market volatility leading up to the election results.
The exit polls conducted by 12 agencies predict a return to power for the BJP and its NDA alliance with 365 seats, well above the 272-seat threshold required to form a government. Analysts note that the market typically favours political stability, and a change in government could introduce market volatility.
While the BJP has welcomed these predictions, the Opposition remains sceptical and anticipates different results on counting day. Mallikarjun Kharge, Congress chief, stated after an INDIA bloc meeting that they expect to win at least 295 seats out of the total 543 Lok Sabha seats.
