Stock market today: The Indian stock market benchmarks, the Sensex and Nifty 50 saw gains on Monday, June 6, not seen since January 2021. Market participants resumed across-the-bard buying after a month of cautious trading as exit polls predicted the Lok Sabha election outcome may be aligned with market expectations.
On June 1, the majority of exit poll results predicted a historic third term for Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government at the Centre. The Bharatiya Janata Party (BJP)-led NDA is projected to win more than 350 plus seats, as per at least ten exit polls.
Better-than-expected FY24 GDP numbers, favourable global cues were the other factors that also boosted market sentiment.
The Sensex and the Nifty hit their fresh record highs, jumping almost 4 per cent each, during the session. Both indices ended at their fresh closing highs with gains of over 3 per cent each.
Sensex opened 2,622 points higher at 76,583.29 against its previous close of 73,961.31 and surged 2,778, or 3.8 per cent, to hit its fresh record high of 76,738.89. The 30-share pack finally closed with a hefty gain of 2,507 points, or 3.39 per cent, at 76,468.78, with 25 stocks in the green.
The Nifty 50 opened 807 points higher at 23,337.90 against its previous close of 22,530.70. It rose 808 points, or 3.6 per cent, to hit its fresh record high of 23,338.70 in early deals. The Nifty 50 closed at 23,263.90, up 733 points, or 3.25 per cent.
In percentage terms, it was the biggest single-day gain for both the Sensex and Nifty 50 since January 2, 2021, when both indices had surged by 5 per cent each, according to Bloomberg data.
Buying was not limited to large-cap stocks alone. The mid-cap and small-cap indices also reached fresh record highs during the session, reflecting investors’ confidence in the Indian stock market. This optimism is driven by prospects of political stability, policy continuity, and the nation’s robust economic growth.
The BSE Midcap index hit its fresh all-time high of 44560.97 during the session but closed 3.54 per cent higher at 44,367.67. The BSE Smallcap index hit its fresh record high of 48,973.96 during the session and finally settled with a gain of 2.05 per cent at 48,232.30.
The volatility index India VIX crashed 15 per cent to come back to the level of 20.94. A fall in India VIX shows market participants expect the market to remain stable in the near term as the India VIX measures expected volatility in the Nifty 50 over the next 30 days.
The overall market capitalisation of the firms listed on the BSE rose to nearly ₹426 lakh crore from nearly ₹412 lakh crore in the previous session, making investors richer by about ₹14 lakh crore in a single session.
As many as 284 stocks, including Reliance Industries, SBI, ICICI Bank, Axis Bank, Larsen and Toubro, Mahindra and Mahindra, Bharti Airtel, NTPC and Power Grid, hit their fresh 52-week highs in intraday trade on BSE.
Top Nifty gainers and losers today
Among the 43 stocks that ended with gains in the Nifty 50 index, Adani Ports (up 10.62 per cent), SBI (up 9.48 per cent), NTPC (up 9.33 per cent), Power Grid (up 9.03 per cent) and ONGC (up 7.43 per cent) ended at the top.
On the flip side, Eicher Motors (down 1.34 per cent), LTIMindtree (down 1.12 per cent), HCL Tech (down 0.57 per cent), Sun Pharma (down 0.32 per cent), Asian Paints (down 0.22 per cent), Britannia (down 0.19 per cent) and Dr Reddy’s Labs (down 0.03 per cent) were the seven stocks in the index that fell on Monday.
Sectoral indices today
All major sectoral indices ended with gains. Nifty PSU Bank index surged 8.40 per cent, followed by Nifty Oil & Gas (up 6.81 per cent) and Nifty Realty (up 5.95 per cent) index.
Nifty Bank surged 4.07 per cent while the Financial Services index and the Private Bank index jumped 4.04 per cent and 3.34 per cent, respectively.
Expert view on markets
Pranav Haridasan, MD and CEO at Axis Securities, pointed out that the Indian stock market responded positively due to optimism about policy continuity. This optimism follows exit polls from the recent Lok Sabha elections, predicting a clear victory for the ruling NDA party – poised to better its 2019 performance – and, consequently, a third term for Prime Minister Narendra Modi.
“Equity markets jumped in line with expectations of a development-driven agenda, with the Nifty scaling a new record high. The India VIX index, which had risen significantly in the past month, has cooled down post the exit poll numbers,” said Haridasan.
“If the actual election results tomorrow (June 4th) align with what exit polls suggest, India is expected to experience a period of political stability, clear policy direction, and ongoing impetus on infrastructure and capex investments. This stability is key to maintaining the current high economic growth cycle. Moreover, there’s an expectation that private sector investments, which have been low in recent years, will increase. Considering these factors, the market is expected to remain bullish and continue its upward growth trajectory,” Haridasan said.
Technical views on Nifty 50
“From a technical standpoint, the 23,100-23,000 level is expected to function as a crucial intermediate support area. Additionally, on the higher end, it’s worth noting that 23,500 is positioned near the bullish territory on D-Street, which suggests a favourable market outlook,” said Osho Krishan, Senior Analyst – Technical & Derivative Research, Angel One.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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