 "Nifty Bank hits 50,000 mark for the first time ever; Check key reason")
Nifty Bank hits record high: Nifty Bank index soared as much as 4.09 percent to hit an all time high of 50,990 on Monday. However, the index is now trading off highs.
At 10:07 AM, Nifty Bank index was trading 2.87 per cent higher at 50,360,05 levels. By comparison, Nifty 50 index was trading 2.81 per cent higher at 23,163.30 levels
The surge in the index came on the back of exit polls, which indicate a decisive victory for the NDA in the 2024 Lok Sabha elections.
Surpassing the 50,000-mark for the very first time, the index's ascent can also be attributed to robust Q4 GDP figures, and S&P recent upgradation of India's rating to positive. India's Q4 GDP grew 7.8 per cent while FY24 growth stood at 8.2 per cent.
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The previous close of Nifty Bank was 48,983.95.
All the components of Nifty Bank were buzzing in trade. Bank of Baroda led the charge with a whopping 7.34 per cent surge, closely followed by Axis Bank (5.83 per cent), SBI (5.64 per cent), IndusInd Bank (4.38 per cent), PNB (4.75 per cent), IDFC First Bank (5.56 per cent), Bandhan Bank (3 per cent), ICICI Bank (4.63 per cent), HDFC Bank (4.40 per cent), Kotak Mahindra Bank (3.47 per cent), Federal Bank (3.05 per cent), and AU Small Finance Bank (2.26 per cent).
“The exit poll results announced so far suggest that the NDA will likely form a stable government. The actual results will be announced on 4 June 2024. A favourable outcome that suggests policy continuity should drive inflows from FIIs, in our view,” Japanese brokerage firm Nomura said in a note.
From a technical perspective, “A break above 50,000 could trigger a rally towards the 51,000 and 52,000 levels. On the downside, if it slips below the 48,000 level, the next support levels are 47,000 and 46,200,” said Santosh Meena, head of research at Swastika Investmart Ltd.