Exit Poll impact! Nifty Bank at record high; SBI share price, Yes Bank, BoB, IndusInd among top gainers
The banking index, Nifty Bank touched jumped to a new record in Monday's trading session. The NSE banking index closed at 30,758.65, surging 1,308.5 points or 4.44%.
The banking index, Nifty Bank touched jumped to a new record in Monday's trading session. The NSE banking index closed at 30,758.65, surging 1,308.5 points or 4.44%. The banking shares were trading in the green with Nifty bank index hitting record high. The Indian stock markets had a positive response on Monday due to exit poll surveys revealed on Sunday. Stock markets welcomed surveys findings that showed BJP returning to power with a strong majority.
Avinash Gorakshakar, Head Research, Joindre Capital told Zee Business Online, ''The market has welcomed the projection by exit poll surveys of NDA returning to power, but the actual results will have a real impact on the domestic market. However, the volatility will be there till 23rd May, but the rally will be continued if BJP bags over 300 seats in Lok Sabha elections.''
The Exit Polls accord an average of 304 seats to NDA and 118 seats to UPA with rest of the seats going to other parties outside of these two pre-poll alliances. BJP is predicted to win an average of 260 seats while Congress is expected to reach 67 seats in 2019. The private bank shares like, IndusInd Bank (up 8.82 per cent), YES Bank (up 7.01 per cent), ICICI Bank (up 4.62 per cent), Federal Bank (up 5.07 per cent) and Axis Bank (up 4.47 per cent) traded in the green. While the PSBs which remained on the higher side were, State Bank of India (up 8.32 per cent), Punjab National Bank (up 6.77 per cent) and Bank of Baroda (up 9.50 per cent).
Gautam Duggad, Head of Research, Motilal Oswal said, ''We expect the markets to react positively to the exit polls. We also expect favourable reaction in the Bond and currency markets. Prediction of continuance of stable government with majority/near majority augurs well from reforms and policy agenda perspective, in our view. It removes a key overhang from the market narrative – potential of a hung verdict, formation of a third front government with no major national party at the helm.''
Joseph Thomas, Head Research- Emkay Wealth Management said, “The domestic equity markets witnessed unprecedented and remarkable surge, across all sectors and segments, after the exit polls indicated a higher probability for the current dispensation to come back to power with a clear majority. What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation and re-organization of the banking system. It is pertinent to note that global factors would also come to play sooner than later, the factors which cannot be overlooked are the impact of the trade and tariff war between the US and China, the developments in the Gulf Region and the prospects of a gradual slowdown in the global economy.”
The benchmark NSE Nifty50 index was up 421.10 points at 11,828.25 (3.69%), while the BSE Sensex was up 1451.90 points at 39,352.67 (3.75%). Among the 50 stocks in the Nifty index, 45 were trading in the green, while 5 were in the red. The shares of Vodafone Idea, YES Bank, SBI, Adani Power, PNB, ICICI Bank, Adani Enterprises, Bank of Baroda, Ashok Leyland and Tata Motors were among the most traded securities on the NSE on Monday.