The stock market is expected to open this trading week on a positive note after the exit polls over the weekend projected PM Narendra Modi’s Bharatiya Janata Party (BJP)-led alliance to win with a comfortable majority in the range of 300 to 350 seats in the 543 member Lok Sabha.
Experts said that a win was anticipated from the ruling government, however, questions remained regarding the margin by which the elections would be won. Now, the polls show that PM Modi-led government stands to win with a huge margin and form the government easily enough to allow it to make changes or revisions to the constitution.
“Exit polls results, which indicate clear victory for the NDA with around 360 seats completely removes the so-called election jitters which have been weighing on markets in May. This comes as a shot in the arm for the bulls who will trigger a big rally in the market on Monday,” commented V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The analyst added that this projection could be the final trigger that allows the bull sentiment to influence the market. Further, he noted, that the better-than-expected GDP growth rate of 8.2 per cent for the previous 2023-24 fiscal year (FY24) could add to the optimism amongst investors. The GDP data was released after market hours on Friday, therefore, the market is yet to react to the announcement.
Notably, on Monday early morning, the GIFT Nifty futures traded near 23,336, indicating a potential jump of nearly 500 points on the benchmark Nifty50 index. Around 8:30 AM, the futures traded above the 23,500 range.
In the last trading session on Friday, the two key equity benchmark indices, Sensex and Nifty, reversed the trend and broke out of their losing streak during the week. The S&P BSE Sensex settled trading at 73,961, inching up by 76 points, while the NSE Nifty50 closed the session at 22,531, gaining close to 50 points.
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