Monday's stock market saw an unparalleled surge in the early going, culminating in a record high as exit polls predicted a resounding win for the BJP-led NDA alliance, inspiring a great deal of excitement among investors.
Representational image
Monday's stock market saw an unparalleled surge in the early going, culminating in a record high as exit polls predicted a resounding win for the BJP-led NDA alliance, inspiring a great deal of excitement among investors. The Sensex opened at a record 75,821.19, rising by 1859.88 points. In a similar vein, the Nifty opened the day at 23,134.55 after rising 603.85 points.
Notably, the Nifty index's 50 businesses all had gains and no falls, indicating an uncommonly strong market performance. Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC were among the top performers, driving the rally with notable gains. The positive market sentiment was reinforced by the remarkable 7.8% GDP growth in Q4FY24 in India, which surpassed forecasts and increased the country's growth to a strong 8.2% for the fiscal year.
ADVERTISEMENT
"Buoyant sentiments are driven by India's impressive Q4FY24 GDP growth of 7.8 per cent, surpassing expectations, with the fiscal year's growth standing at 8.2 per cent," said Varun Aggarwal, founder and managing director of Profit Idea. However, he cautioned that market volatility is anticipated as the final election results draw near.
This confidence extended beyond Indian markets. This upward trend was reflected in Asian markets, driven by China's superior manufacturing figures. Australia's ASX200 gained 0.82 per cent, Japan's Nikkei increased 1.13 per cent, and Korea's Kospi climbed 1.49 per cent. The Nasdaq witnessed a minor decrease, but the US Dow Jones and S&P 500 closed 1.51 per cent and 0.80 per cent higher, respectively.
Asian markets have gained additional support due to rising anticipation of impending rate reduction following a weaker reading of the Federal Reserve's preferred inflation index. However, the dynamics of the US election and geopolitical tensions continue to be possible sources of volatility that could affect world markets. The strong demand for Saudi Aramco's $12 billion share sale indicates that investor confidence is strong, which is reflected in the rising oil prices as well.
Markets have reacted favourably to Claudia Sheinbaum's predicted victory for the Morena party, which is expected to maintain power in Mexico. Looking ahead, major economic indicators—such as GDP reports from different areas and inflation prints across developing markets—are eagerly anticipated by market investors.
Further market insights will be provided by the US jobs data and the policy meeting of the European Central Bank. As the final election results draw near, a dynamic and possibly tumultuous trading phase has been set up by the confluence of favourable domestic and international economic data with favourable political projections.
(With Inputs from ANI)
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
