The countdown to exit polls and ensuing results for Lok Sabha election made investors wealthier by Rs 6.32 lakh crore during the last six sessions. Exit polls on Monday predicted a win for PM Narendra Modi-led NDA in Lok Sabha Election 2019. Even before the exit polls were announced, Sensex and Nifty gained 815 and 250 points, respectively during the last two trading sessions of the previous week.
Investor wealth on BSE rose Rs 2.21 lakh crore during two trading sessions before exit polls on Sunday.
After exit polls predicted return of Modi-led NDA government at the Centre, Sensex closed 1,421 points higher at 39,352 level on Monday. Nifty too extended gains to close at 11,832.70, up 425.55 points or 3.73 per cent today. Investor wealth too rose by Rs 5.24 lakh crore to Rs 151.82 lakh crore at the end of Monday session from Rs 146.58 lakh crore on Friday.
However, the indices saw some profit booking with investors losing Rs 1.46 lakh crore in Tuesday session.
On Wednesday, market could not hold on to its excitement nearly 14 hours ahead of the Lok Sabha election results with Sensex closing 140 points higher at 39,110 and Nifty gaining 28 points to 11,737. Investor wealth soared to Rs 150.69 lakh crore from Rs 150.36 lakh crore on Tuesday.
From Rs 144.37 lakh crore on May 15, market capitalization on BSE rose to Rs 150.69 lakh crore yesterday adding Rs 6.32 lakh crore to investor wealth during last six sessions.
And today, the Indian market hit fresh all-time highs with Sensex scaling 40,000 mark for the first time ever and Nifty crossing the 12,000 mark setting a new record after PM Narendra Modi looked set to return to power for the second time with NDA leading on 330 Lok Sabha seats, in early counting of votes.
Mustafa Nadeem, CEO at Epic Research said,"For markets, this means the smooth functioning of the existing policies, framework, economic activities and so much. This is a big thumbs up which means that all the work that has been in place for last few years would continue to function. Be it economical, fiscal or structural. Projects such as Bharatmala, PM-JAY, Ujjwala, PM Mudra Loan, Relaxation to Middle class in Taxes, Railways reforms, Swachh Bharat, Jan Dhan and PMJJBY which are some big aspirations for Modi and may expand further in Modi 2.0.
So if one has to keep the focus on where to move from here in terms of investments, there are many sectors that are performing well in the last few years with financials, pvt banks, banking sector as a whole, auto and energy. The small cap, midcap indexes have also shined in the last few years though lately crisis of liquidity crunch is haunting them."
Edited by Aseem Thapliyal