BSE mcap hits $5.1 trn, as indices soar on exit poll majority for BJP

A confluence of triggers led by the exit poll data predicting a clear victory for the BJP coupled with stellar GDP data and GST collections pushed the market cap of the Bombay stock exchange (BSE) to Rs 424 trillion or $5.09 trillion in value terms on Monday. 

Further investors saw a surge in wealth by Rs 12.48 trillion, coinciding with the Sensex reaching its all-time high.

Also Read: Investors gain Rs 12.48 trillion from sharp market rally in early trading

The benchmark Sensex soared 3.7 per cent, hitting record high and breaching the 76k mark at 76,738 levels in Monday’s intraday trade. On the other hand, Nifty too, hit its fresh high at 23,338 surging 3.5 per cent in intraday deals. 

 

On Sensex, Powergrid shot up by 10.15 per cent at Rs 341.35, NTPC surged by 7.80 per cent at Rs 386.90, and SBI hiked by 7.47 per cent at Rs 892.10 per share intraday. Others such as L&T, Axis Bank, Ultratech Cement, M&M and IndusInd Bank increased by 4-6 per cent each. 

The BSE MidCap index also showed momentum rising 3.10 per cent at 44,180 levels. The top gainers on the midcap index included Power Finance Corporation (PFC) rising 11.16 per cent, REC Ltd soaring 10.63 per cent and Hindustan Petroleum Corporation surging 7.18 per cent in intraday deals.  Others subsuming Shriram Finance, IDBI and Godrej properties hiked between 6-7 per cent. 

The SmallCap index, however, was up 1.7 per cent at 48,101 levels. The top racing stocks on the index included Nazara Tech,PTC Industries IRB Infrastructure Developers and Moschip Technologies edged up b y 11-12 per cent each. 

What pushed markets to record highs?

According to analysts, the investors were not pricing in the win margin predicted by the recent exit polls for BJP led NDA to come back to power. 

Most exit polls on Saturday showed that the ruling will return to power with a thumping majority, winning seats between 316 to 400 seats in the Lok Sabha elections. 

The record highs of markets are also attributed to better-than-expected Gross Domestic Product (GDP) data and GST collections for the fourth quarter of FY 2023-24. India's GDP growth rate for the quarter ending March 31, 2024, surged by 7.8 per cent, surpassing the RBI's estimate of 7 per cent. 

FY24's provisional GDP growth stands at 8.2 per cent, up from 7 per cent in FY23, exceeding earlier government projections of 7.6 per cent.