Sensex, Nifty log biggest single-day gain in 3 years as exit polls predict 3rd term for Modi govt

Mumbai, June 3

After the exit polls predicted the return of the Modi government for the third straight term, benchmark Sensex and Nifty zoomed more than 3 per cent on Monday, recording their biggest single-day gain in three years and closing at lifetime highs.

The 30-share BSE Sensex soared by 2,507.47 points or 3.39 per cent to settle at a new closing peak of 76,468.78 points with 25 of its constituents ending in the green and five in the red. During the day, the barometer jumped 2,777.58 points or 3.75 per cent to hit a record intra-day peak of 76,738.89.

The NSE Nifty climbed 733.20 points or 3.25 per cent to finish at 23,263.90. During the day, it soared 808 points or 3.58 per cent to hit a fresh intra-day all-time high of 23,338.70.

Sensex and Nifty logged their biggest single-day gains since February 1, 2021, when indices had jumped nearly 5% after the budget presentation. Interestingly, Sensex and Nifty had spurted more than 3 per cent on May 20, 2019, after the exit polls predicted a major win for the BJP-led NDA in the 2019 general election.

Among sectors, PSUs, Power, Utilities, Oil, Energy, Capital Goods and Realty indices soared up to 8 per cent.

A sharp rally in blue-chip stocks Reliance Industries, ICICI Bank, HDFC Bank and State Bank of India propelled the indices to lifetime high levels. Strong GDP data also added to the buoyancy in equity markets.

Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for the third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls. The counting of votes will take place on June 4.

“Nifty logged its best session in over three years, as investors cheered exit polls, along with better-than-expected India Q4 GDP,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

“The markets opened at new highs today largely because of exit polls predicting landslide victory for the BJP-led NDA. This will result in a positive surprise of policy continuity with higher seats for the NDA government,” SAMCO MF Fund Manager & Head of Equity Research Paras Matalia said.

Among the 30-Sensex companies, NTPC, State Bank of India and Power Grid jumped over 9 per cent each. Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank and Tata Steel were the other big gainers.

Sun Pharma, HCL Technologies, Asian Paints, Nestle and Infosys were the laggards.