A day after several exit polls predicted victory for the ruling NDA with a comfortable majority, the rupee appreciated by 64 paise against the US Dollar. It was trading at 69.59 during the day.
The benchmark Sensex at BSE and Nifty at the National Stock Exchange also jumped by 3.75 per cent. While the Sensex rose 1,422 points to hit 39,352.67, the Nifty gained 421 points to hit 11,828.25.
Day after exit poll predicts victory for NDA, Rupee opens with a huge gain of 86 paise or 1.2 per cent against the USD; trading at 69.36 … Sensex rises over 650 points or 1.75% in ore opening session @IndianExpress
What has calmed the nerves?
While over the last few days market participants had grown cautious over prospects of a stable government following reports of SP-BSP alliance doing much better in UP and hurting BJP’s overall numbers, the exit poll results calmed investors’ nerves leading to a sharp recovery in the market.
While concerns had grown over the prospect of an unstable coalition in the last couple of weeks and the Sensex had lost 1,913 points or 4.9 per cent between May 1 and May 15, the exit poll numbers have helped restore markets sentiment and Sensex has already recovered around 1,500 points between Friday and Monday (today).
Will the markets rise further?
Experts say that if the actual result outcome is on the lines of what the exit polls have predicted, it will lead to further gains in the market as FPIs, who have been cautious on India over the last few weeks, will also enter the Indian markets with their investments.
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