Exit poll effect: Sensex surges 400 pts; Nifty tests 6,300 level

MUMBAI: The Nifty opened with a gap-up, its highest since November 5, and hit 6,300 level as the market cheered the exit polls that indicated BJP as the largest party in the four states that went for polls. All the sectoral indices were in the green with banks, capital goods, realty and oil & gas leading the upmove.

The results for exit polls for 4 assembly states forecast that BJP would be the leading party in all the 4 states of Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi. 

"If the results are in line with the exit polls, we think it would be positive for the market. The market is looking for a strong, stable Government post 2014 elections and it seems that these results will likely make the market think that BJP could emerge as the lead party in the 2014 elections," said Bank of America Merrill Lynch report. 

At 09:17 a.m.; the 50-share index was at 6,294.20, up 133.25 points or 2.16 per cent. It touched a high of 6,296.90 and a low of 6,262.40 in early trade today.

The S&P BSE Sensex was at 21,148.45, up 439.74 points or 2.12 per cent. It touched a high of 21,165.60 and a low of 20,992.25 in trade today.

The S&P BSE Midcap Index was up 1.12 per cent and the S&P BSE Smallcap Index gained 0.91 per cent.

The rupee strengthened against the US dollar for second straight session. According to analysts, while weakness in the US dollar and Power Grid Corporation provided support to the Indian currency yesterday, the results of exit polls have led to sharp upmove today.

Among the sectoral indices, the S&P BSE Bankex surged 4.11 per cent, the S&P BSE Capital Goods Index gained 2.94 per cent, the S&P BSE Realty Index moved up 1.87 per cent and the S&P BSE Oil & gas Index gained 1.68 per cent.

The Nifty gainers were ICICI BankBSE 6.08 % (up 5.34 per cent), L&T (up 4.41 per cent), IDFC (up 4.36 per cent), Bank of BarodaBSE 3.65 % (up 4.35 per cent) and Punjab National BankBSE 2.83 % (up 4.25 per cent)

Source- Economic Time

Muntazir Alam

PGDM 1^st Sem

IIMT College of Management

Greater Noida, UP