India M-cap soars to ₹426 L cr
Indian equities soared to new closing highs, the rupee firmed up and bond yields fell to two-year lows on Monday as investors cheered the likelihood of the Bharatiya Janata Party (BJP) returning to power with a strong majority, based on exit poll numbers. The benchmark indices jumped over 3% each, the biggest single-day gain in four years, while the Volatility Index (VIX) — the market's fear gauge — plunged 14.9% a day before votes are counted Tuesday.
Whether the bullish momentum continues over the next few trading sessions will depend on how many seats the BJP-led coalition gets. Investors should brace for a brief reversal if the results aren't aligned with exit poll predictions, analysts said. «Given that the exit poll trends translate into results on Tuesday, a continuation of the relief rally can happen, with the market (Nifty) touching 23,500 briefly before profit booking takes over,» said Venugopal Garre, managing director, Bernstein, in a note to clients. «A greater margin of victory — with seats going into the 380-390 or above range — can increase the magnitude but not the duration of the rally.»
Nifty jumped 3.25%, or 733.2 points, to close at 23,263.90, after hitting a lifetime high of 23,338.70. Sensex gained 3.39%, or 2,500 points, to close at 76,468.78, having hit a high of 76,738.89 during trade.
India M-cap Soars to ₹426 L Cr | page 10
Both indices witnessed the biggest rally in a day since February 2021.
On Monday, India's market cap soared ₹13.78 lakh crore to ₹425.92 lakh crore.
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