Lok Sabha Election results 2019: Investors cheer as NDA 2.0 coming; nearly Rs 2.60 lakh crore wealth created in just 1 hour - Sensex soars over 700 pts
Lok Sabha Election results 2019: Interesting, in the early hours of opening, the index clocked an all-time high of 39,901.59.
Lok Sabha Election results 2019: As expected, the benchmark Sensex soared to touch a new all-time high. At around 1010 hours, Sensex was trading at 39,816.81 higher by 706.60 points or 1.81%. Interestingly, in early trade, the index clocked an all-time high of 39,901.59. Gainers list on Sensex includes IndusInd Bank, SBI, Yes Bank, L&T, ICICI Bank, Hero Motocorp and Kotak Mahindra Bank - they surged from 3% to over 6%. Significantly, this soaring graph is stemming directly from the initial trends from Lok Sabha Elections results 2019 counting, which began at 8 am on Thursday. So far, the results show a big win for PM Modi led NDA government. While the current government is expected to come back, markets have taken this opportunity in creating huge amounts of wealth.
In fact, within few minutes of Thursday’s trading session, investors on Sensex has already created a wealth of over Rs 2.60 lakh crore. That’s among the most massive and fastest gains of them all.
So far the counting shows, BJP-led NDA winning with maximum 320 seats, followed by Congress Party bagging 116 seats and remaining 104 seats divided among others.
Sensex market capitalisation is at Rs 1,53,29,378.57 crore on Thursday. This is higher by over Rs 2,60,254.23 crore compared to previous trading session where the capitalization stood at just Rs 1,50,69,124.34 crore. This means over Rs 2.60 lakh crore wealth has been created by investors and that to within a span of just few minutes.
Talking about Thursday’s trading, Abhijeet Bajpai, Co-founder & CEO, Avighna Trades said, “Market movement will depend on the trends from key states like UP , West Bengal, Maharashtra and Bihar. If the BJP leads the trends as per exit polls or a better performance, markets will move sharply higher from here. Market heavyweights like Reliance, SBI, HDFC, ICICI will lead the rally and the broader market will follow. In case the trends that come out are mixed or give no clear indication of majority to BJP, then market will tank and slide quite fast as the uncertainty will loom over.”
Bajpai added, “For today and next couple of days market will be guided solely on election results and formation of new government but on the longer-term outlook it will not make much difference as the other factors of domestic and global economy will impact the markets more than new government.”