Significant Surge in Stock Market Following Exit Polls Forecasting BJP’s Major Victory
In early trading, the stock market witnessed a significant surge, fueled by expectations of political stability as indicated by exit polls. The Sensex, comprising 30 stocks, surged over 2,000 points, while the Nifty, consisting of 50 stocks, experienced its most substantial increase in four years at market opening. Both the Sensex and Nifty hit record highs today, with all stocks showing gains.
During the pre-open session, the Nifty surged over 800 points or 3.58% to reach 23,227.90, while the Sensex jumped 2,621.98 points or 3.55% to 76,583.29. Leading the market rally were companies like Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC, which recorded significant gains. Additionally, the latest GDP data, indicating robust fiscal growth of 8.2%, further bolstered market sentiment.
Varun Aggarwal, founder and managing director of Profit Idea, attributed the buoyant sentiments to India’s impressive Q4FY24 GDP growth of 7.8%, surpassing expectations, with the fiscal year’s growth standing at 8.2%. However, he cautioned that the market might remain volatile in anticipation of the pending election results.
Exit polls, aggregating 12 surveys, predicted the BJP’s return to power with the ruling NDA alliance securing 365 seats, well above the 272 required to form government. The market typically favors political stability, with a change in government often leading to market volatility. Despite the positive predictions, there is a disclaimer that exit polls do not always accurately predict election outcomes.
The BJP has embraced the exit poll results positively, but the Opposition has rejected them, expressing confidence in a different outcome on the counting day. After a gathering of Opposition leaders from the INDIA bloc, Mallikarjun Kharge, the Congress chief, stated that they anticipate winning a minimum of 295 seats out of the total 543.
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