Sensex

New Delhi: The BSE Sensex posted its biggest ever gain in a decade on Monday, a day after exit polls showed Prime Minister Narendra Modi's National Democratic Alliance (NDA) would retain power with over 300 seats in the mammoth seven-phase Lok Sabha elections that concluded on Sunday.

The BSE Sensex closed 1421.9 points or 3.75% higher at 39,352.67. It is Sensex's biggest gain since May 2009. The Nifty meanwhile ended 421.10 points or 3.69% higher at 11,828.25. Banking stocks were the biggest gainers in the market today with Nifty Bank touching a record of 30,827.85 before settling 4.45% higher at 30,759.70. The gains posted by Sensex and Nifty today are also the second-biggest single-day gain for the indices.

"If the NDA returns to power with a clear majority in line with exit polls, markets would rejoice the policy continuity," domestic brokerage Edelweiss Securities said in a note. Policy and political certainty will be good from foreign flows perspective, it said.

Indiabulls Housing Finance was the top gainer in Nifty, up 12.63% followed by Adani Ports, IndusInd Bank, SBI and Tata Motors, which rallied between 7-9%. Out of the 50 stock in Nifty, 45 ended with gains.

The Indian rupee also gained on Monday rising nearly 1% against the US dollar as traders believe, NDA's return to power will ensure predictable fiscal guidance and near-term inflation certainty. Analysts believe, foreign flows, which have turned negative in the last three weeks, will soon reverse if Modi government comes back to power.

"Exit polls showing that the BJP will return to power will boost market sentiment, Gaurav Dua, head of strategy and investments at Sharekhan told Economic Times. “If the global environment also turns supportive, the Nifty could break past the 12,000 level to a new high,” he added.

Investors wealth grew by nearly Rs 5.5 lakh crore on Monday as the total market capitalisation of BSE-listed stocks grew to Rs 151.85 lakh crore as against Rs 146.58 lakh crore on Friday. Analysts believe if global markets remain supportive then indices may scale record highs in the next few weeks.