Sensex Hits Record Highs as Exit Polls Favor Modi; Global Markets React to Economic Data

Sensex Hits Record Highs as Exit Polls Favor Modi; Global Markets React to Economic Data/Pixabay

VoM News Desk | June 3, 2024 | 03:46 PM IST | Breaking News | Follow on Google News

Sensex Hits Record Highs as Exit Polls Favor Modi; Global Markets React to Economic Data

Sensex Hits Record Highs as Exit Polls Favor Modi; Global Markets React to Economic Data

Indian shares surged to new records on Monday, with the Sensex and Nifty indices reaching all-time highs. The broader Nifty index climbed 3.59% to 23,338.70 points, while the BSE index rose 3.76% to a peak of 76,738.89. By 0830 GMT, both indices had pulled back slightly, trading up around 3%.

This rally follows exit polls suggesting a decisive mandate and a third term for Prime Minister Narendra Modi, boosting investor confidence in continued public spending to drive economic momentum. Both indices have nearly doubled since the 2019 election results.

The 10-year government bond yield dropped to 6.9421%, its lowest since April 2022, before edging up to 6.96% by 0830 GMT. The rupee strengthened to 82.9575, its highest since March, before settling at 83.13.

Exit polls projected Modi’s Bharatiya Janata Party (BJP) and its allies to secure over 303 seats in the 543-member lower house, possibly achieving a two-thirds majority.

European stocks also rose, anticipating an interest rate cut from the European Central Bank (ECB). The pan-European STOXX index was up 0.6%, while U.S. stock futures increased. The U.S. 10-year Treasury yield dropped 4 basis points to 4.47%, and German yields fell.

Investors expect the ECB to cut rates by a quarter point to 3.75%, marking the first major central bank rate cut in this cycle. However, a high euro zone inflation reading weakened the case for rapid rate reductions.

China reported its fastest factory activity growth in nearly two years, bolstering market optimism. U.S. Federal Reserve’s preferred inflation measure held steady, keeping attention on inflation data.

Gold remained steady at $2,327 an ounce, supported by central bank and Chinese buying. Oil prices fluctuated after OPEC extended most output cuts into 2025, with Brent crude at $81.35 per barrel and U.S. crude at $77.21 per barrel.

VoM News Desk

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