By Nidhi Chugh May 20, 2019 11:51:43 AM IST (Published)
Indian markets on Monday opened with their biggest gain since May 16, the counting day of the 2014 general elections. Each of the benchmark indices have surged over 2 percent after most Lok Sabha exit polls predicted a thumping majority for the Bharatiya Janata Party-led National Democratic Alliance (NDA).
Indian markets on Monday opened with their biggest gain since May 16, the counting day of the 2014 general elections. Each of the benchmark indices have surged over 2 percent after most Lok Sabha exit polls predicted a thumping majority for the Bharatiya Janata Party-led National Democratic Alliance (NDA).
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Glancing through the market's reactions to the exit polls' prediction, it seems obvious that investors want the NDA alliance to be re-elected this year.
The 30-share benchmark BSE Sensex added 923 points till 10:30 am, surging 2.49 percent, to 38,847.
The NSE Nifty50 also gained almost 269 points, or 2.33 percent, to 11,673.
At 10:30 am, the Nifty is fewer than 200 points away from reaching its record high of 11,800, while the Nifty Bank index is 1 percent behind. The Nifty Midcap Index has risen more than 3 percent, the highest it has achieved since October 2018. State Bank of India, L&T, Maruti Suzuki, among others, were the top Nifty gainers till 10 am.
In the currency market, the rupee opened at its highest levels in two weeks. The currency, as of 10:30 am, is no longer trading in its opening gains but remains at its highest levels in two weeks.
In the 2014 Lok Sabha elections, the market was expecting a BJP government and on the day of the exit polls, the Sensex, for the first time, breached the 24,000 point mark.
On the counting day in 2014, the Nifty closed at 7,200, its record high at the time.
In 2014, the Lok Sabha elections were held in nine phases and ran from April 7 to May 12. After a thumping win for BJP-led NDA, Narendra Modi assumed the prime minister's office on 16 May.
In the first ten days of May 2014, the markets broke April's lows and closed the month with a gain of 12 percent. On the counting day, the currency market reached 58.91 against the dollar, its first time since July 2013.
Market volatility had reduced sharply as the development agenda of the Modi-led government had filled the investors with fresh hope.
In the lead up to the 2019 elections, markets have been volatile due to uncertainty about the election outcome as well as the policies undertaken by the Modi government since 2014.
Geopolitical developments such as the US-China trade war, the enforcement of the Iran sanctions have also played a part in steering market sentiments.
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