Stock market today: Nifty 50, Sensex hit all-time highs. Know why?

Stock market today: Indian stock market benchmarks—the Nifty 50 and the Sensex—soared to record-high levels in early trade on Monday, June 3, after a majority of the exit polls predicted on Saturday, June 1, that the Bharatiya Janata Party (BJP)-led NDA may win over 350 of the 543 seats in the Lok Sabha elections 2024.

The Indian stock market overcame election-related jitters as exit poll results predicted the return of the BJP-led NDA to power with a substantial majority.

Sensex opened 2,622 points higher at 76,583.29 against its previous close of 73,961.31 and surged 2778, or 3.8 per cent, to hit its fresh record high of 76,738.89.

On the other hand, the Nifty 50 opened 807 points higher at 23,337.90 against its previous close of 22,530.70. It rose 808 points, or 3.6 per cent, to hit its fresh record high of 23,338.70 in early deals.

Investors went on a hectic buying spree across segments, and the midcap and small cap indices also surged to fresh record highs, surging nearly 4 per cent each.

The BSE Midcap index surged 4 per cent to hit its fresh all-time high of 44,560.97, while the BSE Small cap. index jumped 3.6 per cent to its fresh record high of 48,973.96.

Nearly 200 stocks, including SBI, ICICI Bank, Axis Bank, Bharti Airtel, Larsen and Toubro, Mahindra and Mahindra, NTPC, and Power Grid, hit fresh 52-week highs in intraday trade on the BSE on Monday.

In May, the Nifty 50 and Sensex broke their three-month winning run, closing in negative territory due to heightened volatility driven by election-related uncertainty. The volatility index India VIX surged 91 per cent in May.