Stock market today: In percentage terms, it was the biggest single-day gain for both the Sensex and Nifty 50 since January 2, 2021, when both indices had surged by 5 per cent each
Today’s stock market: On Monday, June 6, the benchmarks of the Indian stock market, the Sensex and Nifty 50, experienced increases not seen since January 2021. Following a month of cautious trading, market investors resumed purchasing across the spectrum when exit polls suggested that the outcome of the Lok Sabha election may match market predictions.
As of June 1, most exit poll results indicated that the National Democratic Alliance (NDA), led by Prime Minister Narendra Modi, will win a record-breaking third term in office. At least ten exit polls indicate that the Bharatiya Janata Party (BJP)-led NDA is expected to win more over 350 seats.
The market attitude was further improved by positive global indications and better-than-expected FY24 GDP statistics.
During the session, the Nifty and the Sensex both gained by about 4% to new all-time highs. With advances of more than 3% individually, both indices concluded at their most recent closing highs.
Compared to its previous closing of 73,961.31, the Sensex began 2,622 points higher at 76,583.29 and then climbed 2,778, or 3.8 per cent, to reach its new record high of 76,738.89. Ultimately, the 30-share pack closed at 76,468.78, up 2,507 points, or 3.39 percent, with 25 equities in the green.
Compared to its previous closing of 22,530.70, the Nifty 50 opened 807 points higher at 23,337.90. In early transactions, it gained 808 points, or 3.6%, to reach a new record high of 23,338.70. The Nifty 50 gained 733 points, or 3.25 percent, to settle at 23,263.90.
According to Bloomberg data, it was the largest one-day rise for the Sensex and Nifty 50 in percentage terms since January 2, 2021, when both indices had increased by 5% apiece.
Purchasing wasn’t restricted to big-cap stocks. During the day, the mid-cap and small-cap indices also hit new highs, demonstrating the trust that investors had in the Indian stock market. Prospects for stable politics, policy continuity, and the country’s strong economic growth are what motivate this sense of hope.
The BSE Midcap index concluded 3.54 percent higher at 44,367.67 despite reaching a new all-time high of 44560.97 during the session. During the session, the BSE Smallcap index reached a new high of 48,973.96 and ended the session at 48,232.30, up 2.05 percent.
The India VIX volatility index dropped 15% before rising back to $20.94. The India VIX measures projected volatility in the Nifty 50 over a period of thirty days, and a decline in the index indicates that market players expect the market to stay stable in the short future.
Investors gained around ₹14 lakh crore in value in a single session as the total market capitalization of the companies listed on the BSE increased to nearly ₹426 lakh crore from nearly ₹412 lakh crore in the previous session.
During intraday trading on the BSE, up to 284 stocks—including those from Reliance Industries, SBI, ICICI Bank, Axis Bank, Larsen & Toubro, Mahindra and Mahindra, Bharti Airtel, NTPC, and Power Grid—reached new 52-week highs.
Today’s top Nifty gainers and losers
Adani Ports (up 10.62 percent), SBI (up 9.48 percent), NTPC (up 9.33 percent), Power Grid (up 9.03 percent), and ONGC (up 7.43 percent) were the highest-performing four of the 43 stocks that ended the day higher on the Nifty 50 index.
However, seven stocks in the index decreased on Monday: Asian Paints (down 0.22 percent), Britannia (down 0.19 percent), Dr. Reddy’s Labs (down 0.03 percent), HCL Tech (down 0.57 percent), Sun Pharma (down 0.32 percent), Eicher Motors (down 1.34 percent), and LTIMindtree (down 1.12 percent).
Currently, sectoral indexes
The main sectoral indices all finished higher. The Nifty PSU Bank index increased by 8.40 percent, with the Nifty Oil & Gas and Nifty Realty indexes rising 6.81 and 5.95 percent, respectively.
The Nifty Bank had a 4.07 percent increase, while the Private Bank and Financial Services indexes saw increases of 3.34 and 4.04 percent, respectively.
Experienced review of markets
The MD and CEO of Axis Securities, Pranav Haridasan, noted that optimism regarding policy continuity was the reason behind the bullish response of the Indian stock market. This optimism comes from exit polls from the recent Lok Sabha elections, which predicted that Prime Minister Narendra Modi will be elected to a third term. The incumbent NDA party is expected to perform better in 2019 and win handily.
“As expected by a development-driven program, equity markets surged, setting a fresh record high for the Nifty. Following the results of the exit poll, the India VIX index, which had increased dramatically over the previous month, has decreased, according to Haridasan.
In the event that tomorrow’s (June 4) election results match the predictions made by exit polls, India is anticipated to go through a phase of political stability, well-defined policies, and sustained push for capital expenditures and infrastructure. The continued existence of the current cycle of rapid economic expansion depends on this stability. Also, a rise in private sector investments is anticipated, as they have been relatively modest in recent years. The market is anticipated to maintain its bullishness and carry on with its upward development path in light of these reasons, according to Haridasan.
If the exit polls are correct and tomorrow’s (June 4) election results are as predicted, India is expected to experience a period of political stability, clear policies, and a persistent drive for infrastructure and capital spending. This stability is necessary for the current cycle of rapid economic expansion to continue. Additionally, since private sector investments have been relatively low recently, an increase is predicted. For these reasons, Haridasan believes the market will continue to be positive and continue on its upward development path.
