Sensex climbs as exit polls project BJP win in Gujarat

Stocks may be volatile on Monday when the results come in

Benchmark equity indices gained ground on Friday after exit polls projected an electoral victory for the ruling BJP in Gujarat.

Indian markets, however, largely ignored the U.S. Federal Reserve’s decision to increase interest rates by 25 basis points.

On Friday, the 30-share Sensex gained 216.27 points to close at 33,462.97. It gained 375 points to touch a high of 33,621.96 during intraday trading after exit polls predicted a win for BJP in both Gujarat and Himachal Pradesh.

The broader Nifty of the National Stock Exchange (NSE) closed at 10,333.25, up 81.15 points or 0.79%. The election results would be declared on Monday with market participants expecting a volatile session follow as the results start pouring in.

In its latest note, Credit Suisse had said that as the 2019 general elections draw closer, State elections are likely to attract greater attention from investors.

“Nearly a fourth of India’s population will experience State polls in the coming 12 months. It is also possible that the general elections could be brought forward to late 2018. This has limited direct economic implications, but the changes in market sentiment may drive volatility,” it said.

More than 1,600 stocks gained ground on BSE as against 1,038 declines. The Sensex gainers pack was led by M&M, Coal India and Dr Reddy's Laboratories with gains in the range of of 2-4% each.

Shares of multi-speciality hospital Shalby Ltd, which made its debut on Friday, fell below the issue price of ₹248. On BSE, the shares closed at ₹239.25 - 3.53% lower than its issue price. The public issue of the company, which closed on December 7, was subscribed 2.8 times.

Meanwhile, the rupee strengthened to 64.04 against the dollar from 64.34 on Thursday, while the benchmark 10-year bond yield eased to 7.12%.

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Printable version | May 31, 2020 10:44:49 PM |

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