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

The Indian equity market started the week on a positive note with the National Stock Exchange's Nifty opening above the psychologically important level of 23,300 points on March 7, 2022. The Nifty, which is a free-float market-weighted index of 50 stocks listed on the National Stock Exchange (NSE), had closed at a record high of 23,198.55 points on March 5, 2022. The S&P BSE Sensex, which is a free-float market-weighted index of 30 stocks listed on the Bombay Stock Exchange (BSE), also opened higher at 66,817.81 points.

The rupee also strengthened against the US dollar in early trade on March 7, 2022, as exit polls indicated a landslide victory for the ruling Bharatiya Janata Party (BJP) and its allies in the recently concluded state elections in five states in India. The Indian rupee opened at 74.81 per US dollar, compared to its previous close of 75.11 per US dollar on March 5, 2022.

The exit polls conducted by various news channels and agencies predicted that the BJP and its allies were likely to win a majority in the assembly elections in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur. The results of these elections were scheduled to be announced on March 10, 2022.

The strong showing of the BJP in the elections was seen as a positive sign for the Indian economy and the stock markets, as it indicated political stability and continuity in policies. The BJP's victory was expected to boost investor confidence and lead to further foreign investment in the Indian market.

Furthermore, the global economic recovery and the ongoing US Federal Reserve's monetary policy meeting were also factors that influenced the Indian stock markets and the rupee. The US Federal Reserve was expected to announce its interest rate decision on March 16, 2022, and any changes in the monetary policy could impact the Indian markets.

In the broader market, sectoral indices such as the Nifty IT, Nifty Pharma, and Nifty Realty opened higher, while the Nifty Bank and Nifty Auto indices opened in the negative territory. The Nifty IT index was up by 1.15%, the Nifty Pharma index was up by 1.11%, and the Nifty Realty index was up by 1.14%. However, the Nifty Bank index was down by 0.41%, and the Nifty Auto index was down by 0.47%.

Overall, the Indian stock markets and the rupee started the week on a positive note, with the Nifty opening above the 23,300-mark and the rupee strengthening against the US dollar, as exit polls showed a landslide victory for the BJP and its allies in the recently concluded state elections in India. The global economic recovery and the ongoing US Federal Reserve's monetary policy meeting were also factors that influenced the Indian markets.