Buzz on leaked exit poll data showing a clear majority for an alliance led to rally; Rs 2 lakh cr added to investor wealth since beginning of elections

The benchmark BSE Sensex and National Stock Exchange (NSE) Nifty touched record highs on Friday, as market participants stepped up bets on expectations of a stable government coming to power when election results are declared next Friday.

Dealing room buzz suggested leaked exit poll data pointed to a clear majority for one of the alliances, triggering Friday’s rally.

The S&P BSE Sensex rose 650.19 points, or 2.91 per cent, to close at 22,994.23, after touching an intra-day high of 23,048.49. The CNX Nifty closed at 6,858.80, an all-time high. For the Sensex and the Nifty, the previous closing highs were 22,876.54 and 6,840.8, respectively (on April 23).

The value of trades executed on Friday was more than twice the average of the previous two weeks. The turnover stood at Rs 1.78 lakh crore, compared with the daily average turnover of Rs 90,373 crore in the last fortnight. Since the Lok Sabha elections began on April 7, investor wealth has risen by Rs 1.99 lakh crore; during this period, total market capitalisation rose from Rs 75.54 lakh crore to Rs 77.54 lakh crore. “The rally has been on the back of expectations of a stable government; it is likely to continue. Also, foreign institutional inflows are expected to be strong,” said Nirmal Jain, chairman of India Infoline.

For more visit: Business Standard

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