Tsunamo effect! Exit polls help bring back Rs 5.33 lakh crore in share market

The euphoria of a stable government led by PM Narendra Modi returning to power on May 23 cheered stock markets in trade today. With Sensex and Nifty rising over 3% each, investor wealth rose by Rs 5.33 lakh crore on BSE.

Market capitalisation on BSE rose to Rs 151.86 lakh crore today compared to Rs 146.58 lakh crore on Friday.

Sensex closed 1421 points higher with the index hitting an intra day high of 39,412 compared to Friday's close of 37,930.

Nifty too surged 336 points intra day to 11,732 level compared to the previous close of 11,407.

Market breadth was positive with 2019 stocks closing higher compared to 609 falling on BSE.

Joseph Thomas, Head Research at Emkay Wealth Management said, "The exit polls broadly indicate a greater probability for the return of the current dispensation for yet another term. This may be good from the continuity perspective as far as basic economic and social policies are concerned."

Tracking significant gains in the broader market on Monday, as many as 40 stocks touched their 52-week high levels on BSE.

Some of the stocks that touched 52-week highs include Bajaj Finance, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, SRF, Titan, Kotak Mahindra and PVR.

It's Modi wave again, show exit polls: Sensex may cross 40,000, Nifty likely to hit 11,800 this week

The number of securities that hit the upper circuit limit was 115, while 119 scrips touched their respective lower circuits, according to BSE.

VK Vijayakumar, Chief Investment Strategist at Geojit said, "The broad indication of the exit polls - the return of NDA to power- is good from the market perspective. Strong and stable government can implement the much-needed reforms. The market will do well with financials and rate sensitives in the forefront.

Select beaten down mid and small-caps will enjoy a ride. But there is no room for a sustained rally since there are many domestic and global headwinds."

Adani Group stocks rally as exit polls predict a strong comeback for Narendra Modi government

Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.

The enhanced vigil on the markets will continue till May 23, when the results of the Lok Sabha polls will be declared.

Edited by Aseem Thapliyal