Market Gets Euphoric On Exit Polls; Nifty, Sensex At All-time High

The Indian stock market displayed an unprecedented opening in the Monday trading session after the exit polls prediction of BJP-led to win nearly 400 seats cheered the streets. On the opening bell benchmark indices, Nifty and Sensex surged nearly 4 per cent along with strength in Nifty Bank. 

The National Stock Exchange (NSE) Nifty 50 index opened 603 points higher at 23,134, whereas the S&P Bombay Stock Exchange (BSE) Sensex opened at 75,821 levels with 1,859 points gains.

Nifty Moves

In the Nifty50 index, 48 stocks advanced, while only 2 declined in the morning trade with negligible loss. 

In the 50-stocks index, Adani Conglomerated cheered with massive gains as Adani Ports gained nearly 12 per cent followed by 9 per cent gain in Adani Enterprises. Power Grid and Shriram Finance gained 8.6 per cent and 7.2 per cent respectively, whereas NTPC, Larsen & Toubro and SBI traded more than 6 per cent higher in the morning trade.  

Conversely, in the laggard segment, Eicher Motors and few other IT stocks remained weak. 

Sectoral Movement
In terms of sectoral performance, Nifty Bank soared near 3 per cent, whereas PSU Banks skyrocketed to more than 6 per cent. Metal, Realty and Energy were also 3 to 5 per cent higher. FMCG gained 1.3 per cent followed by decent gains in Pharma and IT. 

The more domestically focussed indices, mid-cap and small-cap also boomed with 2.8 per cent and 2.3 per cent gain respectively. 

Analyst Note 

"Buoyant sentiments are driven by India's impressive Q4FY24 GDP growth of 7.8 per cent, surpassing expectations, with the fiscal year's growth standing at 8.2 per cent," said Varun Aggarwal, founder and managing director, Profit Idea. However, he cautioned that market volatility is anticipated as the final election results draw near.

The Foreign institutional investors (FIIs) turned net buyers on the final day of the month, as they bought Indian equities worth Rs 1,613.24 crore , while domestic institutional investors bought equities worth Rs 2,114.17 crore on May 31.

“After a huge gap up opening Nifty can find support at 23,200 followed by 23,100 and 23,000. On the higher side, 23,650 can be an immediate resistance, followed by 23,700 and 23,800,” said Deven Mehta, Research Analyst, Choice Broking. 

The charts of Bank Nifty indicate that it may get support at 50,000, followed by 49,900 and 49,800. If the index advances further, 50,300 would be the initial key resistance, followed by 50,500 and 50,700, added Mehta.