After the Sensex and Nifty posted their best day in 10 years on May 20th following Narendra Modi's exit poll wins, experts say that the benchmark indices could move to new highs, in case the predictions turn out to be true.
After the Sensex and Nifty posted their best day in 10 years on May 20th following Narendra Modi’s exit poll wins, experts say that the benchmark indices could move to new highs, in case the predictions turn out to be true. The Sensex closed 140.41 points higher at 39,110.21, while the Nifty ended above the 11,750-mark. IndusInd Bank, Sun Pharma shares emerged as the biggest gainers, jumping up to 5.6%. Notably, Sensex and Nifty scaled new record highs yesterday, continuing the post exit poll euphoria.
“The present euphoric reaction might continue and we might also see markets testing it’s previous high and even bit higher, but once this euphoric reaction is done with, we will see macro-economical and macro-technical factors taking dominance once again,” technical analyst Milan Vaishnav told Financial Express Online. Yesterday, the Sensex had surged to a record high of 39,571.73, while Nifty had scaled a fresh high of 11,883.55.
Interestingly, the final results day have always been significant for the Sensex, as the 30-share benchmark has returned between 0.77% and 17% in a single day in the previous occasions. On October 7th 1999, when the NDA government won the elections, Sensex gained 6%. Five years later, the counting day of May 13th 2004 saw the Sensex jump 0.77%. The UPA had won the election in that year.
On 16 May 2009 UPA came pack into government. Notably, when the stock market opened later on Monday 18th May, the Sensex posted its best day in decades, rising more than 17%. From a close of 12,173 on Friday, the Sensex ended at 14,284.10 on Monday (16th May 2009), a surge of more than 2,000 points in a single session. In 2014, when the Narendra Modi-led government assumed power, the Sensex rose about 0.90% on 16th May 2014. It would be really interesting to see how the Sensex does tomorrow.