Benchmark stock market indices hit record highs in early trade on Monday, fueled by exit polls predicting a landslide victory for the BJP-led NDA in the 2024 Lok Sabha elections.
The S&P BSE Sensex surged nearly 2,800 points to an all-time high of 76,738.89, while the NSE Nifty50 climbed over 800 points to reach a record 23,238.70.
At 1:45 pm, the Sensex was up 2,238.59 points at 76,199.90, and the Nifty was up 666.55 points to 23,197.25. The broader market indices also saw sharp gains as volatility plunged nearly 20%.
With the ongoing rally, investors are faced with a crucial decision: should they sell and book profits, or hold on for more potential gains? Several market experts have shared their strategies for investors.
Santosh Meena, Head of Research at Swastika Investmart Ltd, said, “Nifty and Sensex have reached record highs following positive exit polls, with much of this optimism already reflected in current market levels. If the exit poll results are confirmed by the actual election outcome, we could see further gains, with Nifty possibly advancing towards 23,500 and Sensex approaching 77,000.”
“In the near term, we might observe consolidation within the 23,000 to 23,500 range for Nifty. Despite this, the overall trend remains bullish, and Nifty is expected to surpass the 24,000 mark in the coming days after a period of consolidation,” he added.
“This is supported by the attractive valuations in large-cap stocks and the anticipated increase in foreign institutional investor (FII) inflows into the Indian market following the election results.”
It is worth noting that the exit polls predict a thumping victory for the BJP-led NDA, with an even bigger mandate.
According to Axis My India-India Today exit polls 2024, the NDA is expected to secure 361-401 seats, while the INDIA bloc is projected to win 131-166 seats, and ‘Others’ are likely to capture 8-20 seats.
Some market experts advise investors to “ride the wave,” suggesting that the stock markets will continue to gain if the exit polls are accurate.
Vikram Kasat, Head of Advisory at Prabhudas Lilladher, told Business Today that his slogan for the month of June is going to be ‘ride the wave’.
Brokerages explain that an NDA victory would be favourable for the Indian economy and capital markets as it provides stability and continuity in policies. Sectors such as manufacturing, infrastructure creation, and power are likely to benefit the most.
Meanwhile, Deven Mehata of Choice Broking advised, “Traders holding long positions are advised to book profits after a gap-up opening before the results of the general elections 2024. Investors are advised to hold long positions with a trailing stop loss of 23,000 on a closing basis.”
As the market continues to react to exit poll predictions, investors must weigh the potential for further gains against the possibility of market corrections post-election results.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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