Exit polls boost sensex to biggest 1-day rise in 10 years – Times of India

MUMBAI: With exit polls unanimous in predicting a clear majority for the BJP-led NDA and continuation of the Narendra Modi-led government, traders and investors cheered on

Dalal Street

on Monday. The sensex rallied 1,422 points — its highest single-day gain in over a decade and the second highest ever — to settle at 39,353, its highest-ever close.

The 3.7% rise in the index was also its highest single-day percentage gain since Narendra Modi was announced as the NDA’s Prime Minister candidate in September 2013.

On Monday, the NSE Nifty too rallied 421 points to 11,828, also the highest closing level for the index.

The day’s gains added Rs 5.4 lakh crore to investors’ wealth with BSE’s market cap now at Rs 151.4 lakh crore. Of the 30 sensex stocks, 28 closed higher, with only Infosys and Bajaj Auto losing ground.

According to BSE data, HDFC, Reliance Industries and HDFC Bank contributed most to the index’s gains. Some dealers said after the initial run in the indices, short covering by traders, who rushed in to cut their losses, pushed the index to higher levels.

The day’s session witnessed stocks belonging to RIL, Reliance (Anil Ambani) and Adani groups rallying smartly. Adani Enterprises closed over 27% higher while Reliance Power closed 18% higher and Reliance Industrial Infrastructure closed 6.6% up.

Leading brokers said market players are expected to take a breather over the next two sessions. On Thursday, the day the poll results are announced, the market is expected to see increased volatility.

Post-results, eco, rains & trade war may direct markets

Global and domestic factors like the US-China trade war, a slowing domestic economy, the

monsoon

‘s progress, and government formation are expected to dictate the market’s movement after the

Lok Sabha

results are announced on May 23.