Following exit polls predicting an easy win for Narendra Modi’s BJP, Sensex and Nifty posted their biggest intra-day gain in 10 years, while Nifty Bank index saw its biggest jump in history. Notably, Nifty Bank Index soared more than 1,230-points to hit its life-time high of 30,779.90. Notably, a robust rally in the shares of private sector lenders ICICI Bank, HDFC Bank, Kotak Mahindra Bank, IDFC helped the index to achieve this feat. State-run lender SBI spurted more than 7.75% to hit a fresh high of Rs 345.80. ICICI Bank (5.04%) , Federal Bank (4.67%), Axis Bank (4.14%), RBL (4.09%) , Kotak Mahindra Bank (2.45%) were among the stock which soared to a fresh 52-week high on Monday.
Also read: Share market LIVE: Sensex up 1,200 points on Modi’s win in exit polls; Nifty sees biggest jump in 10 years
Meanwhile, the Sensex and Nifty posted their biggest intra-day jump in 10 years on Monday, after exit poll results showed that PM Narendra Modi may retain power. The Sensex is up 1,295 points to 39,225.64, while the Nifty is nearing the 11,800-mark. SBI (7.93%), Tata Motors (6.82%), Yes Bank (6.28%) are among the biggest gainers in the 30-share index.
According to experts, if the exit poll results hold, the Sensex and Nifty could scale new peaks in the upcoming sessions. “If exit polls are right a BJP single party majority may result in an up-move of 5-10% of the Nifty in the near term. However, a non NDA government may lead to a 10-15% correction in Nifty, if we go by market reactions in 2004 and 2009 to big surprises,” UBS said in a note.
For Nifty to cross 12,000 a strong single party majority for the BJP is required, Rusmik Oza, Head of Fundamental Research, Kotak securities said. “Going forward if we have the BJP-led coalition coming back to power on 23rd then expect broader participation in the mid & small cap space as they are the most beaten down in the last 18 months,” he added.