- India’s Nifty closed over 3% higher on Monday, just below fresh all-time highs.
- Exit polls predict a stronger return for the PM Modi-led BJP government.
- All eyes remain on the June 4 India’s election outcome and the June 7 RBI policy decision.
Nifty 50, India’s key benchmark index, rallied to a new record high to end Monday with heavy gains, reversing the previous week’s 2% decline.
Nifty recorded its biggest jump in four years during the market opening.
A potential win, with a majority, for the Bharatiya Janata Party (BJP)-led Prime Minister Narendra Modi’s government ramped up the optimism in the Indian stock market.
The National Stock Exchange (NSE) Nifty 50 closed 3.25% higher on the day at 23,264, having hit a new record high at 23,338.70.
Stock market news
- Top gainers on Nifty were Adani Ports, SBI Bank, Powergrid, NTPC and ONGC. Meanwhile, the big losers on Nifty were Eicher Motors, HCL Technologies and SunPharma and Asian Paints.
- Exit polls over the weekend predicted that PM Modi will retain power for a third straight term, with BJP-led NDA winning anywhere between 350-401 seats.
- The Indian Rupee gained nearly 0.35% on the day against the US Dollar, moving slightly away from the three-month high of 82.96 for the currency.
- Markets also cheered upbeat Chinese Caixin Manufacturing PMI, which improved from 51.4 in April to 51.7 in May, beating the estimates of 51.5.
- Last week, India’s economy grew by 8.2% in the fiscal year ended March 2024, sharply higher than 7% expansion recorded in the previous year, led by a robust performance of manufacturing and construction sectors, per Reuters.
- All eyes remain on the results of the 2024 India’s general election due on Tuesday and the Reserve Bank of India’s (RBI) monetary policy announcements on June 7 for fresh trading impulse.
