Nifty experienced a significant surge in Wednesday’s trade, with all the sectoral indices ending the day in the green. Notably, Nifty Metal, Nifty Auto, Nifty Bank, Nifty FMCG, and Nifty Financial Services posted gains of over 4%.
The positive takeaway from the day was that investors ignored election jitters to show faith in long-term Indian market potential and this is positive.
The substantial rebound was mainly driven by optimism following PM Modi’s victory speech, where he announced that the NDA is set to form the government for a third consecutive term, a first since 1962. PM Modi assured,” Big decisions will be taken in the third term, this is Modi’s guarantee.”
India’s VIX fell by 29% to close below the 19 level. For India VIX its steepest drop was seen since 2015.
The real winner in this scenario is the Indian investor, benefiting from political stability as well as continuity of friendly government policies.
On this historic day, a world record for the number of transactions within one day was set at the NSE exchange. On June 5, NSE CEO Ashish Chauhan said that the highest ever number of transactions were done on this stock exchange in one day; ordering about 1971 crore (19.71 billion) orders and executing over 28.55 crore (280.55 million) trades during a six-hour fifteen-minute trading time frame from 9:15 AM to 3:30 PM. This information was shared via the X platform (formerly Twitter).
The NSE benchmark Nifty50 index rallied by 3.36% leading to its highest single-day gain in more than three years. The Nifty50 index settled at 22,602.45.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jun 5, 2024, 5:46 PM IST
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