2:28 PM: Sensex surges 1,300 points, Nifty Bank hits record high

Indian markets jumped sharply today after exit polls showed BJP-led NDA getting a comfortable majority in Lok Sabha elections. Most of the exit polls predicted a majority for the Prime Minister Narendra Modi’s BJP and its allies after the six-week-long general election ended on Sunday. The rupee also jumped against the US dollar. The Sensex jumped nearly over 1,300 points while Nifty rose above 11,800. The results of Lok Sabha elections will be announced on Thursday.

Here are 10 updates from Indian markets:

1) Banking and auto stocks led the rally while some weakness was seen in IT stocks. The Nifty banking index surged over 4% to hit a new high today.

2) Among Sensex stocks, SBI surged 8% and Yes Bank 6% while L&T, Yes Bank, ICICI Bank, IndusInd Bank, Tata Motors, Maruti, Tata Steel, ONGC and RIL gained between 4-5%.

3) The rupee rose to a two-week high of 69.36 against the US dollar, as compared to its Friday’s close of 70.23. Bonds also rallied with the benchmark 10-year bond yield trading at 7.30%, down 6 basis points from previous close.

4) “The exit results are better than the expectations. I am quite optimistic at these levels,” said Motilal Oswal, CMD of Motilal Oswal Financial Services.

5) “If the NDA’s numbers cross 300, then the rally will continue beyond May 23,” said Mayuresh Joshi, Senior Vice President and fund manager at Angel Broking, adding factors such as the liquidity situation, corporate earnings and global worries, may rein in further upside.

6) Market analyst Sandip Sabharwal says the exit poll results will help Indian markets decouple from global cues in the near term. He remains positive on auto, infra, capital goods and banking stocks, if a stable government is formed.

7) Rusmik Oza, head of fundamental research at Kotak Securities, said: “We expect Nifty 50 to retest the recent high of 11,850 before 23rd May. Break out into a new zone would depend on whether BJP on its own is able to secure more than half the seats.”

8) After the actual election results are announced, the market’s focus will shift back to economy and earnings, says Jagannadham Thunuguntla, senior VP and head of research (Wealth) at Centrum Broking.

9) The midcap and smallcap stocks that have underperformed this year could start to outperform, said Sanjiv Bhasin, EVP for markets and corporate affairs at IIFL. He remains positive on PSU stocks.

10) The broader markets also participated in today’s rally with BSE midcap and smallcap indices up around 3%.

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