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- 🚀 Modi's Re-Election Causes Record Highs in Indian Markets
🚀 Modi's Re-Election Causes Record Highs in Indian Markets
Hello,
The markets jumped to record highs yesterday as exit polls predicted a Modi-led NDA victory in the Lok Sabha elections. Of course, whenever you are reading this, the election results will be out and the markets will be scrambling with experts expecting another day of massive gains for investors after the official announcement by the Election Commission of India (ECI).
Markets
The Indian stock market benchmarks, Sensex and Nifty 50, surged to record highs on June 6, with the Nifty 50 jumping 3.58% and the Sensex gaining 3.55% at one point, marking the highest gains since January 2021.
The surge was driven by exit polls predicting a third term for Prime Minister Narendra Modi's government, suggesting a likely two-thirds majority for the ruling party, which significantly boosted market sentiment.
All major sectors experienced gains, with small- and mid-cap stocks also seeing significant increases. The Nifty Bank index crossed 50,000 for the first time, while Adani stocks soared up to 16%.
Investors added Rs 11 lakh crore to their wealth as the market rallied. The volatility index, India Vix, dropped almost 15%, indicating reduced market uncertainty.
Nifty 50 | 3.25% | 23,263.90 |
BSE Sensex | 3.39% | 76,468.78 |
Nifty Bank | 4.07% | 50,979.95 |
Nifty Vix | (14.90%) | 20.94 |
Notable Gainer & Loser
Source: Moneycontrol
Adani Power Ltd (NSE: ADANIPOWER) +16.17%
Shares of Gautam Adani's multi-billion dollar conglomerate surged by up to 16% on Monday following exit polls indicating Prime Minister Narendra Modi's anticipated victory in the Lok Sabha election results scheduled for Tuesday.
The collective market capitalization of all 10 listed Adani stocks increased by approximately Rs 1.4 lakh crore, elevating the conglomerate's total market value to Rs 19.24 lakh crore.
IRB Infrastructure Developers Ltd (NSE: IRB) +10.29%
The stock surged by over 10% amid reports suggesting that the government is considering raising road toll charges by 3% to 5%.
his potential increase comes after a temporary halt on annual adjustments in April, attributed to the general elections.
Godfrey Phillips India Ltd (NSE: GODFRYPHLP) (3.55%)
The company's shares declined by approximately 4% following news that Executive Director Samir Modi filed an FIR at New Delhi’s Sarita Vihar police station.
Allegations were made against his mother, Bina Modi, and Lalit Bhasin, a board member, for orchestrating an assault on him during a board meeting.
Yesterday’s Highlights
Shriram Finance secures a Rs 3,891 crore ($468Mn) multi-currency social loan. (Moneycontrol)
Welspun Corp's associate company has inked contracts worth Rs 3,670 crore ($441Mn) with Aramco for the supply of steel pipes. (ET)
U.S.-based Zeda is gearing up to raise up to Rs 1,663 crore ($200Mn) for its entry into the Indian market. (ET)
Japan Airlines signs a codeshare agreement with IndiGo. (Moneycontrol)
BluSmart introduces a 100% all-electric premium limousine service in the UAE. (BS)
Adani One has launched two variants of co-branded credit cards in partnership with ICICI Bank. (BS)
Milk prices are being hiked by Amul and other major players. (ET)
Trent aims for a global retail expansion following its success in India. (ET)
IPO / FPO / Issuances
This week’s mainboard IPO schedule
Company (RHP attached) | Offering Period | Listing Date | Issue Price (Rs) | Lot Size |
03-05 June 2024 | 10 June 2024 | 129 - 136 | 110 |
Baron Capital increases Swiggy's valuation to Rs 1.24 lakh crore ($15.1Bn) ahead of its IPO plans. (Moneycontrol)
Kronox Lab Sciences IPO received was subscribed 11 times on the first day, driven by strong interest from retail investors and high net worth individuals. (Moneycontrol)
ZEE Entertainment plans to raise funds through the issuance of shares and Qualified Institutional Placements (QIPs). (BS)