New Delhi: India’s financial markets opened over 2% higher on Monday as investors were buoyed by the prospect of a stable government after exit poll results predicted the return of the Bharatiya Janata Party-led National Democratic Alliance (NDA) to power.
The seventh and final phase of Lok Sabha elections 2019 ended on Sunday evening, with most exit polls predicting that Prime Minister Narendra Modi will be granted a second term on counting day on Thursday (May 23).
At 9:20 am, the S&P BSE Sensex had gained a whopping 800 points, or 2.14%, to trade at 38,740 levels, with Maruti, State Bank of India, Larsen & Toubro, ICICI Bank, and Reliance Industries among the top gainers. The broader Nifty50, had gained 263 points, or 2.31%, to trade at 11,671.
Over 2 hours later, at 12:35 am, the 30-share Sensex was up by over 1,100 points.
Shares of Adani Enterprises, a flagship firm of the company’s empire, were up 18.65% at Rs 141.55 by noon. They had closed at 118.70 on Friday (May 17).
All the Nifty sectoral indices, except Nifty IT and Nifty Media, were trading in the green, with the Nifty PSU Bank index gaining the highest .62 per cent while the rest were up 0.7% to 2.7%.
In the broader market, the S&P BSE MidCap index had gained 296 points, or 2.07%, to trade at 14,604, while the S&P BSE SmallCap index was up 1.86%, or 258 points, higher at 14,145.
Oil and rupee
Oil prices jumped by 1% on Monday after Saudi energy minister Khalid al-Falih indicated that oil producing countries would continue to limit supplies.
Brent crude futures were at $73.25 a barrel around 7:30 am, up 1.04%, from their last close.
The rupee on Monday opened sharply higher against the US dollar after the exit polls showed clear majority for the NDA (National Democratic Alliance) in the Lok Sabha elections 2019.
Asian equities rose from a five-month low during early trade on Monday. Japan’s Nikkei index was up 0.34% while South Korea’s Kospi index advanced 0.57%.
On Friday, US shares slipped on reports that trade negotiations between the US and China have hit a pause. The Dow Jones was down 0.38% to end at 25,764 while the S&P500 slipped 0.58% to close at 2,860. The Nasdaq was down 1.04% to close at 7,816 levels.
(With inputs from Business Standard).