Exit Polls hint NDA win, Markets cheer: BoB, SBI, Yes Bank rise - Expert says buy midcaps, banking stocks
Media predictions have once again indicated NDA government win, which would mean PM Narendra Modi to be sworn for his second innings in leading India.
With almost all the major exit polls indicating a NDA win, all eyes are now on May 23 when counting of votes take place for Lok Sabha election 2019. The markets have responded positively on Monday to the exit polls held on Sunday evening. The benchmark Sensex jumped by over 1,100 points with intraday high of 39,064.23, whereas Nifty 50 surging a massive 350 points with intraday high of 11,743.35. Majority of buyings were witnessed in banking, NBFC and auto stocks. Even Indian rupee strengthened by over 1% against US dollar benchmark at interbank forex market. The domestic currency left below 70-mark, and was trading at 69.554 up by 0.794 points or 1.13%. At around 1313 hours, Sensex was trading at 39,038.46 up by 1,107.69 or 2.92%, while Nifty 50 was performing at 11,736.25 higher by 329.10 or 2.89%.
On Monday’s trading session, Abhijeet Bajpai, Co- Founder - Avighna Trades said, “The exit poll results are out and inline with the expectations been shared on different media and social media platforms. Market has reacted positively as the exit poll results supports the current government to continue. Although speaking historically the exit polls have been more wrong than right but it always affects market sentiments. Today markets are testing upper boundaries and will be totally dependent on news flow.”
Here’s what Exit Polls say about this Lok Sabha elections result:
Times Now - MVR: The poll here suggest NDA win with 306 seats, followed by UPA government having 132 seats, Mahagathbandhan (MGB) government with 20 seats and remaining 84 seats among others.
Today’s Chanakya: Interestingly, the prediction reveals a huge win for NDA government with 350 seats, followed by UPA with 95 seats and 97 among others.
Axis My India - India Today: The poll intimates NDA win with 353 seats, UPA with 94 seats, MGB with 13 seats and others including 82 seats.
C-VOTER: Exit polls estimate 287 seats in the hands of NDA government, UPA with 128 seats, MGB with 40 seats and 87 seats divided among others.
Hence, exit polls reveal that NDA government will see a second inning in India for the first time.
For investors during exit polls, Bajpai at Avighna Traders said, “Sensex may pass 39,200 and Nifty 11,780 on the absence of and negative trigger for selling but this is certainly no time for investing for long time. I would rather advice investors to stay away from buying market heavy weights and look for buying only into midcaps. For traders its good time to take some calculated risk on downside and buy some put options on Nifty and Bank Nifty, as risk reward ratio is not favorable for substantial upside from here.”
Banking stocks have become the top performers on Monday’s trading session already. The S&P BSE Bankex was trading at 34,128.40 up by a whopping 1,249.48 points or 3.80% at around 1334 hours. All banks wre witnessing buying sentiments. Top performers on the index was led by Bank of Baroda shares which rose by 9.42% at Rs 122.60 per piece. BoB was joined by SBI shares up by 7.89% at Rs 344.10 per piece, followed by Yes Bank shares up 6.09% at Rs 142.75 per piece, IndusInd Bank at Rs 1448.20 per piece higher by 5.41%, Federal Bank at Rs 103.70 per piece above 5.33%, ICICI Bank at Rs 410.05 per piece up 5.06% and Axis Bank at Rs 782.50 per piece up 4.59%. Other stocks like City Union Bank, HDFC Bank and ICICI Bank jumped by 1.71% to 1.05%.
Other sectors which rose massively were S&P BSE Auto up by 603.24 points at 18,832.41, S&P BSE Capital Goods rising by 862.51 points at 18,601.09, S&P BSE Consumer Durables higher by 684.28 points at 24,443.49 and S&P BSE Oil & Gas jumping by 629.32 points at 15,290.91.
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