Current state of the stock market: The Nifty 50 and the Sensex, two benchmarks for the Indian stock market, surged to all-time highs in early trade on Monday, June 3, following predictions from most exit polls on Saturday, June 1, that the NDA, lead by the Bharatiya Janata Party (BJP), may win more than 350 of the 543 Lok Sabha seats in 2024.
Election-related anxiety subsided for the Indian stock market, as exit polls indicated that the BJP-led NDA would win a sizable majority and return to power.
Sensex climbed 2778, or 3.8 per cent, to reach its new record high of 76,738.89, opening 2,622 points higher at 76,583.29 versus its previous closing of 73,961.31.
Conversely, the Nifty 50 began trading 807 points higher at 23,337.90, compared to its closing value of 22,530.70. In early transactions, it gained 808 points, or 3.6%, to reach a new record high of 23,338.70.
A wild purchasing frenzy by investors spread across all market segments, and the small- and mid-cap indices also shot up to new all-time highs, rising by about 4% apiece.
The BSE Smallcap index leaped 3.6 percent to a new record high of 48,973.96 and the BSE Midcap index soared 4% to a new all-time high of 44,560.97.
In intraday trading on the BSE on Monday, nearly 200 stocks—including SBI, ICICI Bank, Axis Bank, Bharti Airtel, Larsen & Toubro, Mahindra and Mahindra, NTPC, and Power Grid—reached new 52-week highs.
The Nifty 50 and Sensex ended their three-month winning streak in May, ending lower as a result of increased volatility brought on by election-related concerns. In May, the India VIX volatility index increased by 91%.
