Stock Markets Soar After Exit Polls Predict BJP Win; Most Sectors Hit Record Highs

On June 3, all sectoral indices except Nifty FMCG, Healthcare, IT, and Media reached record highs after a strong rally in the Indian markets. This surge came after exit polls predicted a landslide victory for the Bharatiya Janata Party (BJP).

The Nifty Index jumped over 3% after exit polls projected Prime Minister Modi’s BJP-led government would secure over 350 Lok Sabha seats.


Sector Performance

  • Nifty MidCap and SmallCap 100: Up over 2.5%.
  • Nifty PSU Bank: Leading with an 8% rise.
  • Nifty Oil & Gas and Realty: Up 7% and 6% respectively.
  • Nifty Bank: Increased by 3.7%.
  • Nifty Auto, Private Bank, and Metal: Each rose nearly 3%.
  • Nifty IT and Healthcare: Saw marginal gains.

Analysts expect continued policy stability and aggressive reforms if the BJP secures a third term, boosting investor confidence. They recommend cautious investment due to high valuations, with potential benefits in PSUs, defense, power, manufacturing, and renewable energy sectors.

Analysts’ Views

  • Elara Capital: Prefers Mid & Small Caps but advises a selective approach due to high valuations.
  • Jefferies: Optimistic about capex stocks, favoring real estate, industrials, and power for the long term. Preferred stocks include HDFC Bank, IndusInd Bank, and Eicher Motors.
  • Motilal Oswal: Overweight on financials, consumption, industrials, and real estate sectors, recommending stocks like ICICI Bank and SBI.
  • JPMorgan: Sets Nifty target at 25,000 if BJP retains power, focusing on defense, waterways, and manufacturing themes.

Nifty FMCG, IT, and Healthcare

  • Nifty FMCG: 5% below its all-time peak.
  • Nifty IT: 20% below its high.
  • Nifty Healthcare: Just 2% shy of its record.

Investors are advised to stay cautious and look for profit-booking opportunities amid high market valuations.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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