Mid-day Mood: Sensex, Nifty Surge Over 3% as Exit Polls Predict Big Win for Modi; VIX Eases 18%


The Indian stock market experienced a significant boost around noon on June 3, with both the Nifty and Sensex indices rising over 3%. This surge followed exit polls on June 1, which predicted a decisive victory for the NDA government, sparking widespread buying across the board.

Market Performance

All 13 sectoral indices were in the green, led by notable gains in the Nifty Oil & Gas, Nifty Realty, and Nifty Bank indices, which rose 4-5%. Financial services and oil and gas were the top performers within the Nifty 50. Key stocks driving the index’s upward movement included Reliance Industries Ltd (RIL), State Bank of India (SBI), and Larsen & Toubro (L&T).

By 12 pm, the Sensex had surged 2,319 points, or 3.1%, reaching 76,280, while the Nifty 50 had climbed 697 points to 23,227. Market breadth was positive, with 2,390 shares advancing, 1,038 shares declining, and 130 shares remaining unchanged. In the Nifty 50, 43 stocks posted gains, with only seven stocks declining.

Expert Insights

Suman Bannerjee, CIO of Hedonova, noted that the upcoming election results on June 4 could maintain this positive momentum if the NDA wins, while unexpected outcomes might introduce volatility.

The India VIX, a measure of market volatility, decreased by 18.3% to 20 as of 12:05 pm.

Broader Market Trends

The broader market also reflected the bullish sentiment, with the BSE Midcap index gaining 3.3% and the BSE Smallcap index rising by 2%.

Sectoral Performance

All 13 sectoral indices were in positive territory. The top gainers were Nifty Oil & Gas, Nifty Realty, and Nifty Bank, each up 4-5%. On the other hand, Nifty Pharma, Nifty Healthcare, and Nifty IT saw more modest gains of 0.5-0.7%.

Fundamental Drivers

Prashanth Tapse, Senior VP (Research) at Mehta Equities, attributed the rally to several factors: exit polls predicting a significant NDA win, India’s GDP growth exceeding estimates at 8.2% for FY24, a 570-point surge in the Dow Jones, increased chances of a rate cut in September, early monsoon advancement, and a 10% increase in GST collections to Rs 1.73 lakh crore in May.

Technical Analysis

Anand James, Chief Market Strategist at Geojit Financial Services, highlighted the upper range for Nifty 50 at 24,130 and the lower range at 20,930. For bears to dominate, Nifty 50 would need to close below 22,954-22,841, with 22,700, 22,550, and 22,300 acting as support levels.

Key Movers

Nifty Gainers: Power Grid Corp, Adani Ports, SBI, NTPC, Shriram Finance
Nifty Losers: Eicher Motors, LTIMindtree, HCL Tech, Asian Paints
Sensex Gainers: Power Grid Corp, NTPC, SBI, L&T, Axis Bank
Sensex Loser: HCL Tech

Stock Highlights

PNC Infratech: Shares surged over 7% after the company announced that its subsidiary, PNC Kanpur Highways Ltd, received a payment of Rs 390.62 crore from the National Highways Authority of India (NHAI) as part of a settlement agreement.

Eicher Motors: Shares fell by more than 1% following a report of declining motorcycle sales in May amid challenging market conditions.


The information provided in this article is for informational purposes only and does not constitute financial advice. Investing in the stock market involves risk, including the loss of principal. Always conduct thorough research or consult a qualified financial advisor before making any investment decisions. The opinions expressed are those of the author and do not necessarily reflect the views of any associated entities. Past performance is not indicative of future results.

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