Investors get richer by 4 Lakh crore as exit polls predict the NDA will form government, sensex skyrocketed over 1,200 points to cross 39,000 points and Nifty gained 360 points to cross 11,700 mark. The exit poll predictions also resulted in an appreciated rupee by 79 paise to stand at 69.44 against US dollar.
On Monday stock markets opened cheerfully and are expected to rally with a new confidence instilled by the results of exit polls which predicted a comfortable majority for the ruling NDA.
With the exit polls predictions came in showing likely formation of an NDA government at the Centre, financial markets skyrocketed with over 900 points making rupee stronger by 79 paise against US dollar.
At the market opening on Monday rupee and bonds cheered to the predictions of exit polls which predicted a clear mandate to the incumbent National Democratic Alliance (NDA). Analysts suggest market gains must be checked until counting of votes which will give a final picture.
The partially convertible rupee was trading at 69.3550 per dollar at 0343 GMT before rising to 69.4950 which amounts to 1.2 percent gain in the day. If this gain is sustained it would be the highest since December.
The 30-share index of BSE -Sensex rose to over 962 in early session and traded at 1.81 percent higher at 38,618.40
Whereas the NSE index Nifty was trading at 203.05, and went up at 11,610.20. Rupee closed at 70.22 on Friday. Maruti, L&T, SBI, ICICI Bank, RIL, M&M, IndusInd Bank, Axis Bank, Yes Bank, and Vedanta were the top gainers.
Most of the exit polls predict NDA will get more than 300 seats which can ensure a comfortable victory over and above the required 272 to form the government.