Mumbai, May 20: Bombay Stock Exchange (BSE) Sensex and National Stock Exchange (NSE) Nifty ended at a fresh closing high post-exit polls. The Sensex rose 1,421 points to 39,352 posting biggest one day gain while Nifty surged to settle at 11,828, their highest close ever. The Indian Rupee also jumped against the US dollar. Most of the 2019 exit polls have predicted a majority for the BJP and its ally after a six-week long election came to an end on Sunday. Sensex, Nifty Soars After Exit Poll Results 2019.
Banking and auto stocks rallied high while weakness was seen in IT stocks. The Nifty bank surged over 4 per cent on Monday while the auto index rose 4 per cent. PSU banks posted sharper gains, with Nifty PSU Bank index rising 8 per cent. Syndicate Bank, Bank of India, Allahabad Bank, Bank of Baroda, Canara Bank and State Bank of India rising 8 per cent to 10 per cent. Among Sensex, IndusInd Bank and SBI surged 8.5 per cent while, Yes Bank, Tata Motors, HDFC, M&M, Maruti, RIL, and ONGC rose between 5 per cent and 7 per cent.
Market volatility is likely to rise as we approach towards 2019 Lok Sabha results on May 23. If the general elections results follow exit polls, there is a much higher possibility of markets sprinting towards 12,000, which would be a new benchmark for the Nifty50.
Most of the exit polls have indicated over 300 parliamentary seats for the Bharatiya Janata Party-led NDA. The optimism of a stable government is reflected in Nifty already, CLSA, an investment group, said in a note. “If exit polls are right, more outperformance is ahead as the risk of fiscal worries will decline,” added the note.
(The above story first appeared on LatestLY on May 20, 2019 03:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).