03 Jun , 2024 By : Debdeep Gupta
Markets rode a wave of optimism with both Nifty and Sensex rising over 3 percent around noon on June 3. The rally in the Indian markets kicked in after exit polls on June 1 suggested a decisive win for the NDA government.
Buying was seen across the board, with all 13 sectoral indices in the green.
At noon, the Sensex was up 2,319 points or 3.1 percent at 76,280, and the Nifty 50 was up 697 points at 23,227. About 2,390 shares advanced, 1,038 shares declined, and 130 shares remained unchanged.
"The upcoming election results on June 4 could sustain this rally if the NDA wins, while any surprises might trigger volatility," said Suman Banerjee, CIO of Hedonova.
India VIX was down 18.3 percent at 20, as of 12:05 pm.
In the broader market, the BSE Midcap gained 3.3 percent, and the BSE Smallcap rose 2 percent.
Sectoral Trend
All 13 sectoral indices were in the green. Nifty Oil & Gas, Nifty Realty, and Nifty Bank were the top gainers among the sectoral indices as they gained 4-5 percent.
Meanwhile, Nifty Pharma, Nifty Healthcare, and Nifty IT saw the least gains, rising 0.5-0.7 percent.
Fundamental View
Prashanth Tapse, Senior VP (Research) at Mehta Equities, attributes the rally in the Indian equity market to exit polls predicting a significant NDA win, India's GDP exceeding estimates at 8.2% for FY24, and a 570-point surge in the Dow Jones. Other factors include increased odds of a September rate cut, early monsoon advancement, and a 10% rise in GST collections to Rs 1.73 lakh crore in May.
Technical View
The upper range for Nifty 50 is seen at 24,130 and the lower range at 20,930, said Anand James, Chief Market Strategist, Geojit Financial Services. James said that Nifty 50 will need to close below 22,954-22,841 for bears to dominate and in that case 22,700, 22,550, and 22,300 will be seen as supports.
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