Sensex Soars 400 Points to Record High, Nifty Nears 7,000
MUMBAI: The BSE Sensex jumped over 400 points, while the broader Nifty surged above 6,900 for the first time as markets opened at record highs on Monday. The Indian rupee also strengthened below the 60 per dollar mark. The five-week-long elections wind up today and analysts are betting that the BJP-led NDA will emerge victorious on May 16, when results are announced. Polls have consistently shown the BJP and its prime ministerial candidate Narendra Modi ahead, raising 
expectations the opposition party, which is seen by markets as being more investor- and business-friendly, will either win or come close to an outright majority.
Exit poll results, due later in the evening, will throw a clearer picture, but clearly markets are already factoring in a stable government post May 16.”I am not surprised with the rally. Markets have to factor in the possibilities of election outcome… A 5 per cent upside can take the Nifty to 7,100-7,200 and that looks possible,” said Deven Choksey, managing director of KR Choksey.
Overseas investors resumed aggressive buying in equities and on Friday they bought shares worth Rs. 1,268.78 crore in the cash market. Year-to-date, FIIs have bought Indian shares worth over $4 billion, though domestic institutional investors continue to stay at the sidelines.Banking and energy stocks led the rally today. However, defensive stocks such as IT and pharma were under selling pressure as investors bet on high beta cyclicals, which have been the big outperformers this year.
Reliance Industries was the top Nifty gainer, up over 4 per cent. IndusInd Bank, Axis Bank, SBI also saw strong buying interest. Wipro, Sun Pharma and TCS traded with modest losses. The Nifty has surged 17 per cent since September 13 – the day the BJP nominated Narendra Modi as its prime ministerial candidate, hitting its latest record on Friday.
But if BJP falls short of a majority, markets could plunge 8 to 10 per cent in one day, and up to 20 per cent in the aftermath, analysts say.Mr Choksey says the Nifty can slip to 6,600 if results are not up to expectations.As of 09.30 a.m., the Sensex traded 310 points higher at 23,304, while the Nifty was up 88 points at 6,947.
