Key Takeaways
- Sensex surged 2,073 points (2.8%) and Nifty jumped 677 points (3.16%) in a historic rally.
- The Indian rupee appreciated 13 paise to 83.06/USD, its best single-day gain since December 2018.
- Exit polls predicting a third term for the BJP-led NDA government fueled the market optimism.
Indian stock markets witnessed a historic surge on Friday, with the benchmark Sensex soaring over 2,000 points and the Nifty reclaiming the 22,000 level. The rally was driven by exit polls forecasting a third term for the BJP-led NDA government.
Market Performance in Detail
The 30-share BSE Sensex zoomed 2,073.28 points, or 2.80%, to close at 76,074.44. During the session, it had jumped as much as 2,777.58 points to 76,778.74. The broader Nifty50 climbed 676.85 points, or 3.16%, to settle at 22,095.30.
Major gainers among Sensex firms included State Bank of India, Power Grid, NTPC, Larsen & Toubro, IndusInd Bank, Axis Bank, ICICI Bank, and Reliance Industries.
Lagging stocks were HCL Technologies, Asian Paints, Nestle, and Sun Pharmaceuticals.
Rupee’s Best Day in Over Five Years
Mirroring the equity rally, the Indian rupee appreciated by 13 paise to close at 83.06 against the US dollar. This marked the currency’s strongest single-day gain since December 2018.
Forex traders attributed the rupee’s strength to the positive market sentiment from the exit polls and a weaker US dollar overseas. The local unit opened at 83.15 and moved between 83.05 and 83.17 during the day before settling at the provisional rate of 83.06.
Analyst View on the Rally
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, stated, “Exit polls indicated a clear majority for the BJP-led NDA government, which boosted market sentiments. The US dollar declined on weak personal spending data from the US.”
He noted that the Indian rupee gained specifically on the combination of a weak US dollar and positive domestic markets.
Global and Domestic Context
In contrast to India’s surge, major Asian markets like Seoul, Tokyo, Shanghai, and Hong Kong settled lower. European markets were also trading in negative territory.
On the commodities front, the global oil benchmark Brent crude futures advanced 0.13% to USD 81.95 per barrel. The dollar index, which measures the greenback against a basket of currencies, was trading 0.09% lower at 104.66.
Data showed Foreign Institutional Investors (FIIs) were net sellers on Thursday, offloading equities worth Rs 3,050.15 crore. The previous day, the markets had seen modest gains, with the Sensex up 75.71 points and the Nifty up 42.05 points.
