Nifty Skyrockets to All-Time Highs After Market Celebrates ‘Exit Poll’ Results

At the close, the Nifty 50 was at 23,263.90 up by 3.25%

The Indian equity markets experienced a significant surge, with the NSE Nifty 50 displaying impressive gains, closing over 3.25% higher at a record-breaking 23,250 points. This surge was largely attributed to the optimistic projections of exit polls forecasting a third consecutive term for Prime Minister Narendra Modi’s government.

The Nifty 50 reached all-time highs, with remarkable intraday gains, buoyed by increases across major sectors, including notable upticks in small- and mid-cap stocks. Market sentiment soared amidst expectations of a potential two-thirds majority for the ruling party, despite historical variations in exit poll accuracy.

On June 3, the Dalal Street celebrated the exit poll outcomes, witnessing Indian equity markets surge over 3%. Factors such as robust GDP data, promising monsoon forecasts, increased GST collections, and positive global market trends further fueled bullish sentiment. The Nifty opened with a significant gap-up, closing at 23,263.90, marking a substantial gain of approximately 733 points.

Top performers in the rally included PSU Banks and Energy sectors, driven by anticipation of continued reforms and potential re-rating of PSU stocks. Market optimism is anticipated to persist, fueled by sidelined inflows from the past three months.

Looking forward, the market will closely monitor key economic indicators, including GDP growth and budget implementation, to sustain the current bullish momentum. As investors await the election results, the buoyant market sentiment reflects confidence in the resilience and growth potential of the Indian economy.

Bank Nifty: Up by 4.07%

The Bank Nifty commenced trading on a positive note, opening in the green and witnessing a notable surge of 4.07%. This upward momentum persisted throughout the trading session, culminating in a closing figure of 50,979.95, signaling robust performance and investor confidence in the banking sector.

Likewise, the BSE Sensex displayed remarkable strength, recording a significant uptick of 3.39% and concluding the day in the green at an impressive high of 76,468.78.

All sectors closed on a positive note, underscoring widespread investor confidence. The oil and gas sector experienced remarkable growth, surging by 6.83%. Leading the charge, GAIL (India) Ltd. saw a substantial increase of 12.60%, highlighting its robust performance. Hindustan Petroleum Corporation Ltd. followed closely, with an impressive gain of 8.80%, while Adani Total Gas Ltd. posted a commendable rise of 8.34%. Notably, there were no declines within this sector today, signaling a uniformly positive trend.

Foreign Institutional Investors (FII/FPI) displayed robust activity in the Indian market. Their buy value stood at Rs. 23,451.26 crore, while the sale value amounted to Rs. 16,600.50 crore, resulting in a net value of Rs. 6,850.76 crore.

Concurrently, Domestic Institutional Investors (DII) also exhibited notable participation in the market. Their buy value totaled Rs. 22,651.16 crore, with a sale value of Rs. 20,737.18 crore, culminating in a net value of Rs. 1,913.98 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Bank of Baroda with a 12.08% increase, State Bank of India with a 9.48% increase, Axis Bank with a 5.84% increase, Punjab National Bank with a 5.68% increase, and IndusInd Bank with a 4.59% increase.

On the other hand, the biggest losers in the sector included AU Bank with a 0.97% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Surges to Over Two-Month High Amid Positive Economic Signals

The Indian rupee surged to its highest level in over two months, closing at 83.14 against the US dollar on Monday. This significant uptick of 28 paise was attributed to several positive factors, including robust domestic macroeconomic indicators, increased foreign investment inflows, and the depreciation of the US dollar against major Asian currencies.

Analysts attribute the rupee’s strong performance to encouraging domestic economic data, coupled with sustained foreign capital inflows. Furthermore, the decision by the (Organization of the Petroleum Exporting Countries)OPEC+ alliance to maintain current oil output levels contributed to lower crude oil prices, which in turn supported the Indian currency.

Trading within a range of 82.95 to 83.17 during intra-day deals, the rupee finally settled at 83.14 against the dollar at the interbank foreign exchange market. This marks a notable improvement from its previous close, further bolstered by the positive sentiment in domestic markets following exit poll predictions favoring the incumbent BJP-led government for a third consecutive term.

Previously, the rupee last closed at 83.13 against the dollar on March 21, surpassing the 83.00 mark on March 18. Monday’s surge represents the highest single-day gain since November 15, 2023, underscoring the currency’s resilience amidst favorable market conditions.

As the Indian rupee continues to exhibit strength, supported by a buoyant domestic market and favorable global economic factors, investors remain optimistic about its performance in the foreseeable future. Meanwhile, fluctuations in the dollar index and Brent crude prices will continue to influence currency markets, warranting close monitoring for potential impact on the rupee’s trajectory.

Stocks Highlights

Adani Ports & Special Economic Zone Ltd. Shares Surge
Adani Ports & Special Economic Zone Ltd. experienced a significant rise in share price, climbing 10.62% from its previous close of Rs 1,437.40 to a last traded price of Rs 1,590.00. The company also announced a dividend of Rs 6.0 per share on May 2, 2024, with a record date of June 14, 2024. Over the past three years, the stock delivered a 74.17% return, outperforming the Nifty 100’s 47.42% return, though it trailed the Nifty Infrastructure’s 96.36% return. In the fiscal year ending March 31, 2024, the company allocated 10.65% of its operating revenues to interest expenses and 7.1% to employee costs.

Eicher Motors Ltd. Shares Dip
Eicher Motors Ltd. saw a decline in share price, dropping 1.34% from its previous close of Rs 4,733.45 to Rs 4,670.00. The company reported a robust return on equity (ROE) of 22.17% for the fiscal year ending March 31, 2024, surpassing its five-year average of 17.54%. However, a weekly stochastic crossover on May 31, 2024, suggests potential bearish trends, historically resulting in an average price decline of 5.02% within seven weeks. Over the past three years, Eicher Motors Ltd. delivered a 71.02% return, significantly higher than the Nifty 100’s 47.42% return. The company spent less than 1% of its operating revenues on interest expenses and 7.47% on employee costs for the fiscal year ending March 31, 2024.

Advance Decline Ratio

Today, the advance-decline ratio was 1.71, and the market breadth was positive. The volatility index India Vix deceased by 14.89 to settle at 20.94 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1661
Decliners – 971
52Wk High – 213
52Wk Low – 50
High Band Hitters – 225
Low Band Hitters – 90
200d SMA – 21069
50d SMA – 22412
20d SMA – 22516

Top Gainers and Losers Stocks

The top gainers were Adani Ports (+10.62%), SBIN (+9.48%), NTPC (+9.33%), Power Grid (+9.03%), and ONGC (+7.43%).

The top losers were Eicher Motors (-1.34%), LTIM (-1.12%), HCL Technologies (-0.57%), Sun Pharmaceutical (-0.32%), and Asian Paint (-0.22%).

Top Gainers and Losers Sectors

The top gainers sector were Oil & Gas (+6.81%), Realty (+5.95%), Financial Services (+4.04%), Metal (+3.34%), and Media (+3.14%).

SECTORS – NOTABLE ACTION
OIL & GAS +6.81%
REALTY +5.95%
FINANCIAL SERVICES +4.04%

Stocks Ban List

None of the stocks listed by SEBI for the F&O ban are included in the ban list.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

ZEEL, and SAIL stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 23000 to 23500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
IPO Financing Strategies: Structuring the Deal
Bulls Regain Momentum Ahead of ‘Exit Poll’, Nifty Ends on Positive Note
Bears Rule the Roost as Nifty 50 Slumps Below 22,500

This article is only for educational purposes and is not an investment advice.