Exit Poll 2024: How to trade keeping Lok Sabha Election results in mind?
Stock market today: The frontline indices surged during early morning deals in response to the Lok Sabha Election 2024 results. Most of the Exit Polls predicted a third term for the Narendra Modi government, which ended on Saturday last week.
The Nifty 50 index opened upside and touched a new lifetime high of 23,338, whereas the BSE Sensex hit a new peak of 76,738. The Bank Nifty index surged for the third straight session and touched a new record high of 50,990 within a few minutes of the stock market's opening bell.
This rally, according to stock market experts, is due to the upbeat mood of market bulls after the exit polls predicting BJP-led NDA's victory. However, they cautioned that the current rally is just a euphoria as one should remain vigilant about the actual Lok Sabha Election results.
They emphasized that NDA's victory means continuing the government policies, but BJP winning less than 400 seats would mean a dent in the fundamental reforms requiring a constitutional amendment. They also advised traders to avoid overenthusiasm as clarity of the new Government is an essential factor that one should keep in mind while taking a fresh trade position on either Monday or Tuesday.
They recommended long-term investors to wait for more clarity as the Union Budget 2024 still needs to be presented.Commenting on the current rally in the Indian stock market today, Dhiraj Relli, MD & CEO at HDFC Securities, stated, "The possibility of the BJP returning to power bodes well for the continuation and acceleration of the reform process. This outcome was largely anticipated, so the markets might, after the initial excitement, adopt a wait-and-see approach for the new direction set by the latest Government." He further added, "If
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