The first impressions of the Lok Sabha 2019 elections have started emerging. Extending gains in the morning session today, Sensex gained 1,000 points to breach the historic 40,000 mark for the first time ever.
Nifty too crossed the key 12,000 mark and set a new record for the index’s new high on the back of early counting in Lok Sabha election indicating PM Narendra Modi was set to storm back to power with a thumping majority.
The Sensex and Nifty extended gains after opening 1.2% higher from the previous close. The Sensex was trading around 40,050, up 2.4%, around 10:45 a.m. The Nifty was at 12,009, up 2.31%.
At 10:45 a.m. India time, the BJP-led NDA was leading in nearly 325 constituencies while the opposition Congress-led coalition was ahead in 105 seats.
As many as 28 out of the 30 Sensex stocks were trading in the green. Banks, power, energy, industrials and infrastructure companies jumped between 3% and 8%.
Yes Bank, up 8%, surpassed IndusInd Bank to become the top gainer among the frontline stocks. IndusInd Bank gained 6.5% while State Bank of India rose 6.1%.
The BSE Mid-cap index was up 2% and the Small-cap index was up 1.6%.
The centre of it all is one man – Prime Minister Narendra Modi.
PM Modi has brought the macroeconomic status of the country to a significantly better condition than what he inherited from the previous UPA regime. The fiscal deficit has come down from about 5% of the gross domestic product (GDP) in 2012-13 to 3.5% of GDP in 2017-18. The inflation rate has been brought down to 4 percent from 10 percent in 2012. The GDP growth of the country has been remarkable under the Modi government. The sound macroeconomic conditions will help India to attain PM Modi’s dream of double-digit economic growth.
After coming to the centre as the prime minister of the country, Narendra Modi took some bold reforms like GST, IBC to improve business conditions in the country. The impact of these reforms is visible in the improvement of ease of doing business and healthy economic growth. PM Modi enjoys high trust ratings among international financial institutions like World Bank, IMF, rating agencies like S&P, Moody’s and many others, therefore, the foreign investors are bullish about Indian economy for as long as Narendra Modi is in power.
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