Exit polls forecasting a decisive third-term victory for the Narendra Modi-led NDA government in the Lok Sabha elections have led to a significant uptick in the shares of Indian state-owned companies and infrastructure-related firms.
Citigroup Inc. and Jefferies Financial Services Inc. identify manufacturing and electric vehicles among the key beneficiaries if the exit poll predictions materialize, favoring the Bharatiya Janata Party (BJP) in the final vote count on June 4.
As the market commenced trading on Monday, the benchmark NSE Nifty 50 Index surged by up to 3.6%, establishing a new intraday record. Additionally, indices for infrastructure and state-owned firms on the NSE soared to their all-time highs during early trading.
The Indian rupee strengthened notably against the US dollar, marking its most significant gain since March 2023, reaching 82.9725.
By afternoon trade, both the Nifty 50 and Sensex experienced robust surges of nearly 3%, achieving record highs of 23,338.70 and 76,738.89, respectively.
All 13 major sectoral indices showed gains, with Nifty Energy, Nifty PSU Bank, and Nifty Realty leading the charge with increases of 4-5%. On the other hand, Nifty Pharma and Nifty Healthcare recorded more modest gains, each rising by 1.2%.
In the broader market, BSE Midcap witnessed an uptick of nearly 4%, while BSE Smallcap gained 2%.
