The exit poll predictions of a victory for the BJP-led NDA coalition found its reflection on the Singapore Stock Exchange where the Nifty hit a record high of 7179.50 in late trades on Monday. Though it closed at 7,117, it was still higher by 75 points over the previous close.
This trend is expected to continue on Tuesday on the National Stock Exchange as well. “The markets could rally by another 5% if official results on Friday testifies a majority win of 272 seats by the NDA as predicted by many exit polls,” said UR Bhat, managing director, India, of UK-based Dalton Strategic Partnership LLP.
Most market players expect the Nifty to hit 7,400 this week. Foreign institutional investors were once again big-time buyers, pumping in over Rs1,210 crore on Monday, provisional exchange data said.
FII investments in equities this month stood at Rs4,025 crore. In the debt segment, their investments touched Rs3,700 crore. In the last two trading days, the Sensex had gained 1206.96 points to touch 23,551, while the Nifty added 364.40 points at the current closing level of 7,014.25.
Since February 4, the markets have been on a high on two accounts: the UPA government would be routed and the BJP’s prime ministerial candidate Narendra Modi would address the current government’s policy paralysis.