Nifty Opens Above 23,300, Rupee Strengthens As Exit Polls Show Another Modi Landslide

The Indian equity markets opened on a positive note on May 16, 2024, with the National Stock Exchange's Nifty index crossing the psychologically important level of 23,300 points for the first time. The S&P BSE Sensex also rose by over 500 points to reach a new all-time high of 77,500 points. The uptrend in the Indian stock markets was attributed to the exit poll results that indicated a landslide victory for the incumbent Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) in the recently concluded Lok Sabha elections.

The exit polls conducted by various news channels and agencies predicted that the BJP-led National Democratic Alliance (NDA) would win a clear majority in the elections, with the BJP alone securing around 300 seats in the 545-member Lok Sabha. The exit polls suggested that the opposition Congress party and its allies were likely to win around 100 seats, which was a significant decline from their performance in the 2019 elections.

The positive sentiment in the Indian equity markets was also boosted by the rupee's strength against the US dollar. The Indian currency opened at 71.75 against the US dollar and touched a high of 71.68 during the day's trade. The rupee's appreciation was attributed to the expectations of a stable and strong government at the center, which would provide policy certainty and attract foreign investment into the Indian economy.

The positive sentiment in the Indian markets was also reflected in the trading volumes, with the total turnover on the BSE and the NSE reaching over Rs 1 lakh crore each on May 16, 2024. The top gainers in the Nifty index were HDFC Bank, Reliance Industries, and Infosys, which rose by over 2%, while the top losers were Sun Pharma, Tata Motors, and HUL, which declined by around 1%.

The positive sentiment in the Indian markets was also reflected in the global markets, with the US S&P 500 and the European Stoxx 600 indices trading higher during the day's trade. The crude oil prices also rose by over 1% to reach $75 per barrel, which boosted the shares of oil and gas companies in the Indian markets.

In summary, the Indian equity markets opened on a positive note on May 16, 2024, with the Nifty index crossing the 23,300-mark for the first time and the Sensex reaching a new all-time high of 77,500 points. The rupee also strengthened against the US dollar, and the trading volumes reached over Rs 1 lakh crore each on the BSE and the NSE. The positive sentiment in the Indian markets was attributed to the exit poll results that indicated a landslide victory for the BJP and Prime Minister Narendra Modi and the expectations of a stable and strong government at the center. The global markets also traded higher, and the crude oil prices rose, which boosted the shares of oil and gas companies in the Indian markets.