Stock market at new all-time high; Sensex above 76,500 for the first time, Nifty crosses 23,300

The Sensex opened 2,621.98 points, or 3.55%, higher at 76,583.29, while the Nifty 50 opened at 23,337.90, up 807.20 points, or 3.58%. The Bank Nifty index jumped above the 50,000-mark for the first time. All the constituents of Nifty 50 were trading in the green. 

Strong rally was seen across the board as the Nifty Smallcap 100 and the Nifty Midcap 100 index also surged nearly 3% each.

Also Read: Stock market today: Nifty 50, Sensex hit record highs after exit polls predict BJP-led NDA election win

All the sectoral indices traded with huge gains of 1-4%, with The Nifty PSU Bank, Nifty Oil & Gas, Nifty Auto, Nifty Metals rising the most. 

The record breaking rally in the Indian stock market came on the back of optimistic exit poll results predicting a significant win for the BJP-led alliance. 

Other key catalysts for the bulls to roar on Dalal Street include India’s robust economic growth exceeding estimates. Official data showed India’s GDP grew at 8.2% for FY24, beating all estimates. India’s Q4FY24 GDP growth was at 7.8% annually.

Also Read: Indian Stock Market: Exit polls sentimental positive for capex stocks, says Jefferies

Early monsoon advancement in the country and a strong growth in GST collections to ₹1.73 lakh crore in May also fuelled the rally in the markets. 

Positive global cues also supported the bullish sentiment as the latest US inflation data increased hopes of early interest rate cuts from the US Federal Reserve.

“Fundamentals, technicals and sentiments turning favourable at the same time are rare in the market. This is what has happened now. DIIs, HNIs, retail investors are all going to turn buyers. Short-covering can add to the momentum. The rally is likely to be led by largecaps,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Also Read: Stocks to buy: 15 stock picks by Motilal Oswal after exit polls

He believes stocks like Reliance Industries, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L&T, M&M, Tata Motors, Bajaj Auto, Eicher Motors are fundamentally strong largecaps with potential to lead the rally. 

IT stocks like TCS, Infosys, HCL Technologies, Coforge, Persistent Systems and L&T Technology Services offer contrarian buying opportunities, he added.

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Published: 03 Jun 2024, 09:16 AM IST