As exit polls smell Modi’s 2014 entry, markets modify behaviour
6 Dec 2013 1:09 AM GMT
The index is at the highest closing level since 20,974.79 on November 5.
The National Stock Exchange’s (NSE) CNX Nifty, too, spurted 80.15 points (1.3 per cent) to 6,241.10. The SX40 on the MCX Stock Exchange rose 120.07 points to 12,427.14.
Most exit polls indicated gains for the BJP in Delhi, Chattisgarh, Madhya Pradesh and Rajasthan. The election results will be announced on Sunday. ‘The Sensex surged on news showing that exit polls conducted in four states predicted a BJP victory,’ said RKSV Co-Founder Raghu Kumar.
The parties that win the state polls may have a stronger footing during the Lok Sabha elections scheduled to be held by May 2014. ‘We believe that a stable government following the 2014 general elections could remove one key source of uncertainty and support a more sustainable growth uptick,’ said Nomura, noting that the exit polls may differ from the official results.
Bank of America Merrill Lynch said results in line with the exit polls would be positive for the market, which is looking for a strong, stable government after the 2014 polls. ‘Markets reacted positively to the exit poll results... predicting a positive momentum for a BJP-led government in four states in the recently held state elections,’ said Veracity Broking Services Head of Research Jignesh Chaudhary.
Nine of the 13 BSE sectoral indices advanced, with a strong performance in bank and capital goods stocks. The S&P BSE Sensex opened on a positive note and climbed as much as 457 points to an intra-day high of 21,165.6.
ICICI Bank and HDFC Bank shares together contributed 163 points to the gains on the Sensex, which was also lifted by Larsen & Toubro and Reliance Industries. BHEL and Maruti Suzuki were among the 20 index shares that moved up. Profit booking pared the gains and the index closed at 20,957.81, adding 249.10 points or 1.2 per cent.
On the BSE, as many as 1,253 stocks ended with gains, 1,258 finished with losses and 173 ruled steady.
Total turnover rose to Rs 2,087.38 crore from Rs 1,973.33 crore on Wednesday. Investors also tracked gains in the European markets and a strong rupee, he said. There is still concern about the US Federal Reserve tapering its stimulus programme on positive economic data, Chaudhary said.
Rupee too rises to 1-month high
Mumbai: The rupee continued to rule at a one-month high, firming up by another 30 paise to 61.75 against the dollar on Thursday, after exit polls predicted a strong showing by the Bharatiya Janata Party (BJP) in the recently concluded assembly elections. The rupee resumed higher at 61.75 from the previous close of 62.05 per dollar at the interbank foreign exchange market and firmed up further to 61.53. After hovering in a range of 61.53 to 61.90, it ended at 61.75, a gain of 30 paise or 0.48 per cent. This is the highest level since 5 November. The Indian currency opened strong Thursday, tracking exit poll results which favoured the BJP.
Investors feel if the BJP comes to power, it will help the markets, said an analyst. The US currency also advanced as dollar supplies improved on overseas inflows into local stocks, including the Power Grid Corp follow-on offer, and sales by banks and exporters amid a strong local equity market.Agencies
The National Stock Exchange’s (NSE) CNX Nifty, too, spurted 80.15 points (1.3 per cent) to 6,241.10. The SX40 on the MCX Stock Exchange rose 120.07 points to 12,427.14.
Most exit polls indicated gains for the BJP in Delhi, Chattisgarh, Madhya Pradesh and Rajasthan. The election results will be announced on Sunday. ‘The Sensex surged on news showing that exit polls conducted in four states predicted a BJP victory,’ said RKSV Co-Founder Raghu Kumar.
The parties that win the state polls may have a stronger footing during the Lok Sabha elections scheduled to be held by May 2014. ‘We believe that a stable government following the 2014 general elections could remove one key source of uncertainty and support a more sustainable growth uptick,’ said Nomura, noting that the exit polls may differ from the official results.
Bank of America Merrill Lynch said results in line with the exit polls would be positive for the market, which is looking for a strong, stable government after the 2014 polls. ‘Markets reacted positively to the exit poll results... predicting a positive momentum for a BJP-led government in four states in the recently held state elections,’ said Veracity Broking Services Head of Research Jignesh Chaudhary.
Nine of the 13 BSE sectoral indices advanced, with a strong performance in bank and capital goods stocks. The S&P BSE Sensex opened on a positive note and climbed as much as 457 points to an intra-day high of 21,165.6.
ICICI Bank and HDFC Bank shares together contributed 163 points to the gains on the Sensex, which was also lifted by Larsen & Toubro and Reliance Industries. BHEL and Maruti Suzuki were among the 20 index shares that moved up. Profit booking pared the gains and the index closed at 20,957.81, adding 249.10 points or 1.2 per cent.
On the BSE, as many as 1,253 stocks ended with gains, 1,258 finished with losses and 173 ruled steady.
Total turnover rose to Rs 2,087.38 crore from Rs 1,973.33 crore on Wednesday. Investors also tracked gains in the European markets and a strong rupee, he said. There is still concern about the US Federal Reserve tapering its stimulus programme on positive economic data, Chaudhary said.
Rupee too rises to 1-month high
Mumbai: The rupee continued to rule at a one-month high, firming up by another 30 paise to 61.75 against the dollar on Thursday, after exit polls predicted a strong showing by the Bharatiya Janata Party (BJP) in the recently concluded assembly elections. The rupee resumed higher at 61.75 from the previous close of 62.05 per dollar at the interbank foreign exchange market and firmed up further to 61.53. After hovering in a range of 61.53 to 61.90, it ended at 61.75, a gain of 30 paise or 0.48 per cent. This is the highest level since 5 November. The Indian currency opened strong Thursday, tracking exit poll results which favoured the BJP.
Investors feel if the BJP comes to power, it will help the markets, said an analyst. The US currency also advanced as dollar supplies improved on overseas inflows into local stocks, including the Power Grid Corp follow-on offer, and sales by banks and exporters amid a strong local equity market.Agencies
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