The domestic stock markets witnessed a historic day on Monday, a day after exit polls predicted win for the Bharatiya Janata Party-led NDA in Lok Sabha election 2019, with Sensex vaulting to 1,422 points to close at a record 39,352.67 and NSE Nifty surging over 421 points to log its best single day gains in over 10 years. The 30-share BSE gauge also registered its biggest one-day rise in the last six years. The market capitalisation of BSE-listed companies jumped by Rs 5,33,463.04 crore on Monday. Among the Sensex constitutes, IndusInd Bank, SBI, Tata Motors, Yes Bank, LT, HDFC, Maruti and ONGC emerged as the top gainers – surging as much as 8.64 per cent.
State Bank of India (SBI) share rose as much as 8.04 per cent to Rs 344.60, highest since November 2017. And, it is unlikely to stop here. According to India Nivesh, the stock is poised to clear all-time high. “A close above 350 would open doors for 390,” it said while suggesting the investors to hold on to the stock. “Keep holding longs in SBIN with a revised stop 324,” India Nivesh added.
Last week, it had recommended SBIN when it was trading near 315 mark. Back then, the target given was of 350. It also predicts that Nifty is on the verge of a fresh breakout from its all-time high of 11856. “Going ahead, a move above the same might extend the gains towards 12000 and above levels. Traders holding long positions in index futures are advised to revise their stop loss below 11580 (in spot). In case of any consolidation or profit booking, 11750 – 11690 levels might act as intermediate support where the buying could emerge,” it said.
The markets now aim at crucial three days with Lok Sabha results to be announced on May 23. 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.
Tracking overall positive sentiment, the Indian rupee on Monday jumped 49 paise to close at a nearly two-week high of 69.74 against the US dollar. Brent crude, the global benchmark, was trading at 72.61 per barrel, higher by 1.40 per cent
Commenting on domestic cues, HDFC Securities MD and CEO Dhiraj Relli said, “Indian markets expectedly cheered the outcome of the exit polls and Nifty registered its largest point gains since Jan 25, 2009. Nifty is just shy of all-time high of 11,856 but has nevertheless closed at its all-time closing high.”