Sensex or Nifty Surge 4 percent to Record Highs What’s Driving D-Street?

Driven by favorable elements like the results of the exit polls and good GDP figures for the previous fiscal year, D-Street experienced a strong start to Monday’s trading.

Sensex or Nifty Surge 4 percent to Record Highs What's Driving D-Street?

As anticipated, Monday’s session saw a record-high for Indian stocks, helped by the exit poll’s result, which suggests that the existing administration may continue. Encouraged by the positive news flow, the Sensex reached a new all-time high of 76,738.89, and the Nifty rose to 23,338.7, representing an intraday gain of almost 4 percent. In the meantime, Sensex or Nifty Surge 4 percent to Record Highs Nifty Bank reached a new all-time high of 50,990 levels and opened above 50,000 levels for the first time.

Sensex or Nifty Surge 4 percent to Record Highs, It is uncommon for feelings, technicals, and fundamentals to all turn positive at the same moment in the market. That’s what has transpired thus far. With the Nifty down about 600 points from its May highs, the market was extremely quiet heading into the main event—the elections. Large-scale profit booking also took place.

Sensex or Nifty Surge 4 percent to Record Highs. There is also a high short position in the market. These will all undergo significant alteration. Retail, HNIs, and DIIs will all become purchasers. Regarding the performance of the markets today, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that short-covering may increase the momentum.

The following are the most likely causes that drove the Bank Nifty and headline indexes to all-time highs:

Data from exit polls: As the exit polls published on Saturday indicated a resounding win The D-Street is mostly supporting the policy continuity that will come with the current government in the Lok Sabha Elections 2024, which would be won by the BJP-led NDA.

Head of Fundamental Research for Investment Services at Anand Rathi Shares and Stock Brokers Narendra Solanki stated, “I think markets may not have priced in such strong numbers and we could see some reflection of that on Monday opening trade.” The exit poll results for the incumbent government are very solid.

Robust GDP in Q4 and FY24 Sensex or Nifty Surge 4 percent to Record Highs

Better than expected by experts, India’s gross domestic product (GDP) rose by 7.8% between January and March, according to official figures released on Friday. The GDP was reported to have grown by 8.2% for the entire FY24, compared to 7% the year before. The With an 8.2% growth, the GDP figures released on Friday were stronger than anticipated. The market will receive essential support from this. Vijayakumar continued, “S&P’s upward revision of India’s rating outlook is also positive.”

Strong GST collection in May: According to the most recent data given by the Ministry of Finance, May’s GST collection was recorded at Rs 1.73 lakh crore, up 10% from the previous year. The already positive atmosphere on D-Street was further enhanced by the significant increase in GST collection. For the first time, GST revenue in April of last year exceeded Rs 2 lakh crore.

A robust start to the June series was indicated by the low FII index position:

Anil Singhvi, the managing director of stock24news.com, had already stated that the low FII position in the index before of the crucial Lok Sabha elections in 2024 is favorable and is probably going to cause a D-Street bull run in June. He went on to say that there could be significant short covering if the poll results continue to follow expectations.

Indian markets in 2024 will resemble Wall Street’s greatest day.

Indian markets performed well today, reflecting the positive mood on Wall Street. The blue-chip index Dow Jones Industrial Average had its best day of 2024 on Friday, closing 575 points, or 1.51 percent, higher. All three of the major US indices saw rises of up to 0.35 percent at the pre-market opening.

Decline in the price of crude oil

In Monday’s trading, oil prices kept falling even as the Deep output cuts were indicated by OPEC+ well into 2025. US West Texas Intermediate (WTI) oil futures for July delivery down 19 cents, or 0.25%, to $76.80, while Brent futures for August delivery were down 24 cents, or 0.3 percent, at $80.87 a barrel. Since most of India’s crude oil needs are imported, the drop in the price of crude oil is good news for the country’s economy and the D-Street.

Technical elements

Anand James, Chief Market Strategist at Geojit Financial Services, pointed out that Friday’s inside bar positions Nifty to reverse previous week’s declines. Furthermore, he claims that should a range breakout occur, the expected upswing will have room to rise to at least 23065, with a significant fibo identified at 23480, as the market is currently near the 20-day SMA with fast stochastics at the lower extreme takes shape

Extreme scenarios derived from the VIX’s Friday closing point at 24130 for the upper range and 20930 for the lower range. Failure to move over 23065 will indicate trade rejections, he continued, but for bears to gain control, a closing back below 22954–841, in which case 22700–550–300 will be in play.

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