Sensex and Nifty 50 post biggest single-day gain in 3 years

Sensex and Nifty 50 post biggest single-day gain in 3 years. REUTERS/Francis Mascarenhas

VoM News Desk | June 3, 2024 | 03:55 PM IST | Breaking News | Follow on Google News

Sensex and Nifty 50 post biggest single-day gain in 3 years

Sensex and Nifty 50 post biggest single-day gain in 3 years

Sensex and Nifty 50 Achieve Biggest Single-Day Gain Since January 2021 Amid Election Optimism

On Monday, June 6, the Indian stock markets experienced a significant surge, with the Sensex and Nifty 50 indices registering their largest single-day gains since January 2021. This upward momentum was driven by optimistic exit polls predicting a strong majority for the BJP-led NDA in the upcoming Lok Sabha elections, aligning with market expectations for political stability and policy continuity.

Market Performance Highlights:

1. Sensex Movements:

• Opening: Sensex opened 2,622 points higher at 76,583.29 against the previous close of 73,961.31.
• Record High: The index surged by 2,778 points, or 3.8%, to hit a fresh record high of 76,738.89.
• Closing: The Sensex closed with a substantial gain of 2,507 points, or 3.39%, at 76,468.78, with 25 of the 30 stocks in the green.

1. Nifty 50 Performance:

• The broader Nifty 50 index also mirrored the Sensex’s performance, registering nearly 4% gains to hit its record high.

Historical Context:

• This was the biggest single-day percentage gain for both indices since January 2, 2021, when they surged by 5% each.

Market Sentiment:

• The strong gains reflect market participants’ renewed confidence, following a month of cautious trading. The anticipation of a decisive mandate for the BJP-led NDA is seen as a positive development, likely to result in political stability and continued economic reforms.

Expert Insights:

• Osho Krishnan, a senior technical and derivatives analyst at Angel One, highlighted the positive market sentiment but advised caution due to elevated implied volatility and upcoming key events, including the election results and the RBI Monetary Policy Committee meeting.

Stock Recommendations:
Based on expert analysis, several stocks are recommended for potential gains:

1. NHPC: Target price ₹120, Upside potential 12%
2. SJVN: Target price not specified, Upside potential inferred
3. Campus Activewear: Target price not specified, Upside potential inferred
4. Coromandel International: Target price ₹1,417-1,485, Upside potential 14%
5. Samvardhana Motherson International: Target price not specified, Upside potential inferred
6. KNR Constructions: Target price not specified, Upside potential inferred
7. Unspecified Stock (support near ₹935): Target price ₹1,100
8. Unspecified Stock (support near ₹98.60): Target price ₹120
9. Unspecified Stock (support near ₹2,805): Target price not specified

Global Market Reactions:

• European stocks and U.S. stock futures rose, anticipating an interest rate cut from the European Central Bank.
• China’s strong factory activity data further boosted market sentiment.
• Gold prices remained steady, and oil prices fluctuated following OPEC’s decision to extend output cuts into 2025.

Investors are encouraged to focus on stocks with strong fundamentals and technical indicators while remaining cautious due to the volatile nature of the markets and upcoming key events.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.