Saturday, June 22, 2024

Sensex and Nifty Reach Record Highs Fueled by PM Modi’s Optimistic Election Predictions for BJP


Sensex-Nifty touch all-time high as PM Modi predicts historic win for BJP alliance

As the Indian stock market continues its bullish trend, the Sensex and Nifty indices have once again soared to new heights. This surge is largely attributed to Prime Minister Narendra Modi’s optimistic projection for the BJP-led alliance in the upcoming government formation. The Prime Minister anticipates not just a victory but a record-breaking margin in the win.

In a notable discussion with the Economic Times, PM Modi expressed his confidence that the BJP’s unprecedented electoral numbers would reflect positively on the stock market records. “I can say with confidence that on June 4, as the BJP hits record numbers, the stock market will also hit new record highs,” he elaborated during the interview.

The Prime Minister credited the investor confidence to the significant rally Sensex has seen, moving from 25,000 points to 75,000 in the past decade under his government’s tenure. “Recently, we reached a whopping USD 5 trillion market cap for the first time ever,” PM Modi highlighted, pointing to the Bombay Stock Exchange’s (BSE) landmark achievement earlier this week.

This milestone was reached after the BSE market cap soared from USD 4 trillion in early April to USD 5 trillion in just over a month and a half. Market capitalisation reflects the total market value of a company’s shares, and hitting the USD 5 trillion mark underscores a robust investor confidence in the Indian market.

Despite some fluctuations, the Indian stock indices have shown remarkable stability, propelled by widespread sectoral support. With the electoral phases concluded, there’s a growing anticipation among investors for a commanding comeback by the Narendra Modi-led government. This sentiment has spurred a wave of fresh stock purchasing among investors.

Factors such as softer-than-expected US consumer inflation in April, consistent inflation moderation in India, and an early prediction for the southwest monsoon’s arrival by the India Meteorological Department (IMD) have further buoyed the Indian stocks. The IMD forecasts the monsoon will reach Kerala by May 31, a day earlier than the usual June 1.

Experts are optimistic about the positive influence of these developments on the market. “Early onset of southwest monsoon has provided a boost to the domestic market, which was underperforming in the last 2 months to other emerging markets,” stated Vinod Nair, Head of Research at Geojit Financial Services.

Last week, the Sensex celebrated a cumulative jump of approximately 2,000 points, showcasing the market’s robust health and the rallying confidence among investors. With political stability expected post-elections and a solid foundation of GDP growth forecasts, manageable inflation levels, and effective central bank policies, the outlook for the Indian economy is bright.

Despite seeing overseas investors pull back, domestic institutional investors have stepped in as net buyers, stabilizing the market trends. “We anticipate the prevailing positive trend to continue,” says Ajit Mishra, SVP of Research at Religare Broking Ltd., pointing towards a promising future for the Nifty and Sensex indices.

This blend of political forecast, economic stability, and strategic investments paints an optimistic picture for India’s financial markets, signaling not just an immediate surge but a sustained growth trajectory in the times to come.

Alexandra Bennett
Alexandra Bennett
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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