Sensex and Nifty surge over 3% to record highs as exit polls predict major BJP-led NDA victory

Benchmark stock indices Sensex and Nifty surged over 3 percent to close at lifetime highs on Monday, driven by broad-based buying after exit polls forecast a significant win for the BJP-led NDA in the general elections.

The 30-share BSE Sensex rose by 2,507 points, or 3.39 percent, to a new closing high of 76,468, marking its largest single-day gain in three years.  The NSE Nifty increased by 733 points, or 3.25 percent, to close at 23,263.

Exit polls on Saturday predicted that Prime Minister Narendra Modi will secure a third term, with the BJP-led NDA expected to win a substantial majority in the Lok Sabha elections.

Vote counting is scheduled for June 4.

Sharp rally of shares

A sharp rally in blue-chip stocks Reliance Industries, ICICI Bank, HDFC Bank and State Bank of India propelled the indices to lifetime high levels. Strong GDP data also added to the buoyancy in equity markets.

Shares of all Adani Group companies continued their sharp rally on Monday, with Adani Power surging nearly 16 per cent, in line with a massive surge in the equity market.

Among sectors, PSUs, Power, Utilities, Oil, Energy, Capital Goods, and Realty indices soared up to 8 per cent.