Stock Market Today: Nifty opens at record highs, cheers a likely PM Modi third term

• India’s Nifty rebounded to open at record highs on Monday.
• Exit polls point to a stronger return for the PM Modi-led BJP government.
• All eyes remain on the June 4 India’s general election outcome.

Nifty 50, India’s key benchmark index, firmed up to hit a new record high above 23,300 at the open on Monday, snapping the previous week’s 2% decline.

Nifty recorded its biggest jump in four years during the market opening. 

A potential win, with a majority, for the Bharatiya Janata Party (BJP)-led Prime Minister Narendra Modi’s government ramped up the optimism on the Indian stock market.

The National Stock Exchange (NSE) Nifty 50 is up 2.62% on the day, trading near 23,120, as of writing.

Stock market news

• Early gainers on Nifty are Adani Ports, Adani Enterprises, Powergrid, NTPC and Shriram Finance. Meanwhile, the main laggards in early dealings are Eicher Motors and LTiMindtree.
• Exit polls over the weekend predicted that PM Modi will retain power for a third straight term, with BJP-led NDA winning anywhere between 350-401 seats. 
• The Indian rupee opened 47 paise higher, which was a near three-month high for the currency.
• Markets also cheer upbeat Chinese Caixin Manufacturing PMI, which improved from 51.4 in April to 51.7 in May, beating the estimates of 51.5.
• Last week, India’s economy grew by 8.2% in the fiscal year ended March 2024, sharply higher than 7% expansion recorded in the previous year, led by a robust performance of manufacturing and construction sectors, per Reuters.
• All eyes remain on the results of the 2024 India’s general election due on Tuesday and the Reserve Bank of India’s (RBI) monetary policy announcements on June 7 for fresh trading impulse.