“Market Surge: Sensex & Nifty Soar Over 3% as Modi’s Predicted Victory Boosts Investor Confidence; VIX Drops 18%”

“Market Surge: Sensex & Nifty Soar Over 3% as Modi’s Predicted Victory Boosts Investor Confidence; VIX Drops 18%”

Mid-day Market Boost: Sensex and Nifty Surge Over 3% Following Exit Polls Favoring Modi

Market Overview

On June 3, the Indian stock markets experienced a significant boost with both Sensex and Nifty indices rising over 3% around noon. This positive movement followed exit polls from June 1 predicting a decisive win for the NDA government led by Prime Minister Narendra Modi.

Broad-Based Buying

The market saw widespread buying across all 13 sectoral indices, with every sector in the green. Notably, the Nifty Oil & Gas, Nifty Realty, and Nifty Bank indices were the top performers, each gaining between 4% and 5%. This broad-based rally was driven by optimism spurred by the exit poll results, indicating strong investor confidence in the continuity of the NDA government’s policies.

Key Indices Performance

At 12 PM, the Sensex surged by 2,319 points or 3.1% to reach 76,280 points, while the Nifty 50 index rose by 697 points to hit 23,227. The market breadth was positive with 2,390 shares advancing, 1,038 shares declining, and 130 shares remaining unchanged. Within the Nifty 50, 43 out of 50 stocks posted gains, underscoring the market’s widespread bullish sentiment.

Leading Contributors

Among individual stocks, Reliance Industries Limited (RIL), State Bank of India (SBI), and Larsen & Toubro (L&T) were significant contributors to the indices’ upward movement. Their robust performance played a crucial role in lifting the overall market sentiment.

Expert Insights

Suman Bannerjee, CIO of Hedonova, noted that the market’s rally could sustain if the NDA wins the upcoming election results on June 4. However, any unexpected outcomes might introduce volatility. As of 12:05 PM, the India VIX, a measure of market volatility, decreased by 18.3% to 20, indicating reduced market fear and increased investor confidence.

Broader Market Performance

In the broader market, the BSE Midcap index gained 3.3%, and the BSE Smallcap index rose by 2%, reflecting positive sentiment across different market capitalizations.

Sectoral Trends

All 13 sectoral indices were in positive territory. The top gainers were Nifty Oil & Gas, Nifty Realty, and Nifty Bank indices, each climbing 4-5%. Meanwhile, sectors like Nifty Pharma, Nifty Healthcare, and Nifty IT experienced more modest gains, rising by 0.5-0.7%.

Fundamental Drivers

Prashanth Tapse, Senior VP (Research) at Mehta Equities, attributed the market rally to several factors:

  1. Exit Poll Predictions: The exit polls predicting a significant win for the NDA boosted investor sentiment.
  2. GDP Growth: India’s GDP growth exceeding estimates at 8.2% for FY24 added to the positive outlook.
  3. Global Market Influence: A 570-point surge in the Dow Jones also contributed to the upbeat sentiment.
  4. Interest Rate Expectations: Increased odds of a rate cut by September further fueled the market rally.
  5. Monsoon Advancement: Early advancement of the monsoon season was seen as a positive sign for the economy.
  6. GST Collections: A 10% rise in GST collections to Rs 1.73 lakh crore in May indicated strong economic activity.


The Indian stock markets experienced a robust rally driven by optimistic exit poll results, strong economic indicators, and favorable global market trends. The broad-based buying across all sectors and significant gains in key indices underscored the positive investor sentiment. As the election results approach, the markets are poised for potential volatility, but the current trend suggests a strong belief in the continuity of the NDA government’s policies.

This surge highlights the dynamic interplay between political developments, economic indicators, and market performance, reflecting investor confidence and the overall health of the Indian economy.

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