Sensex jumps 1,471 points in a day, investors wealth rises by Rs 5.24 lakh crore - These five factors played major role

An amazing gain was witnessed on Dalal Street, especially in Sensex. The benchmark Sensex surged by a whopping 1,471 points after touching an intraday high of 39,412.56. However, the 31-scrip index finished at 39,352.67 up by 1,421.90 points or 3.75%. This would be highest ever gain witnessed in 1 day. Meanwhile, Nifty 50 was also not far away, as the index completed at 11,828.25 above 421.10 points or 3.69%. A host of factors were responsible for the blockbuster upswing in Sensex. Let’s find out, what boosted Sensex!

Large caps soaring! 

Uptick in Sensex can be due to major buying made in large cap stocks. Top 5 performers on the index was led by IndusInd Bank up by 8.64% ending at Rs 1,492.60 per piece. The bank was followed by SBI at Rs 344.60 per piece up 8.04%, Tata Motors at Rs 190 per piece up 7.53%, Yes Bank at Rs 143.60 per piece up 6.55%, HDFC at Rs 2,117.35 per piece up 6.20%.

Some major stocks were also Maruti Suzuki (Rs 7,088.35 per piece), ONGC (Rs 176.05 per piece), M&M (Rs 654.25 per piece), Reliance Industries (Rs 1,325.50 per piece), Axis Bank (Rs 782.75 per piece), ICICI Bank (Rs 407.80 per piece), Asian Paints (Rs 1,372.75 per piece) and Vedanta (Rs 166.65 per piece) rose by 3.50% to nearly 6%. 

Other stocks like Bharti Airtel, Hero Motocorp, PowerGrid, Bajaj Finance, HDFC Bank, Tata Steel, Kotak Bank, NTPC, HUL, TCS, ITC, Sun Pharma, HCL Tech and Coal India were also in gainers list.

Midcap, small caps found investors love!

The S&P BSE Small Cap jumped by 493.37 points or 3.55% ending at 14,380.51. Gainers here included stocks like AKSH Optifibre, TV Select, HUBTOWN, Jamna Auto, Indiabulls Ventures, ITI, Indiabulls Real Estate, Adani Green and Time Techno as they rose by 14% to maximum 20%. 

Meanwhile, the S&P BSE Midcap finished at 14,819.44 up by 511.08 points or 3.57%. Stocks like Adani Enterprises, Reliance Power, GE T&D, Adani Power, Reliance Infra, DHFL, Edelweiss, Bank of India, IDBI Bank, Adani Transport, Canara Bank, Reliance Capital, Indian Bank, SAIL, NBCC, M&M Finance, L&T Finance, Godrej Industries, HUDCO, Oberoi Realty, Cummins India and Tata Power surged by 7% to a whopping over 27%. 

Banking, auto and capital goods extreme shine!

It would be buying in banking stocks which played a major role in boosting Sensex, as the index jumped by over 1,500 points. The S&P BSE Bankex ended at 34,416.54 up by 1,537.62 points or 4.68%. Every bank was trading in positive with Bank of Baroda being the most bought shares as it finished at Rs 122.85 per piece up by 9.64%. Other banks like IndusInd Bank, SBI, Yes Bank, Federal Bank, Axis Bank, ICICI Bank, HDFC Bank, City Union Bank and Kotak Bank were also in gainers list. 

Meanwhile, the S&P BSE Capital Goods was second top sector to see hefty buyings on Sensex. The index completed at 18,735.41 up by 996.83 points or 5.62%. Stocks like GE T&D, Suzlon Energy, Graphite India, Sadbhav Engineering, BEML, CG Power, BEL and NBCC jumped by 7% to nearly 16%. 

Finally, the S&P BSE Auto index also did not shy away from becoming a money making sector. The index ended at 18,981.97 points above 752.80 points or 4.13%. Here, stocks like Motherson Sumi, Tata Motors, Cummins India, Bharat Forge, Maruti Suzuki, M&M and TVS Motors were best performers by rising between 5% to over 8%. 

Investors wealth jump!

Not only stocks but investors wealth were also flourishing on Sensex. Wealth jumped by over Rs 5.24 lakh crore as the benchmark BSE Sensex sprinted more than 1,422 points. 

By end of Monday’s trading session, the market cap of BSE listed companies stayed at Rs 1,51,82,848.32 crore, compared to capitalization of Rs 1,46,58,709.68 crore on Friday. This would mean that investors wealth jumped by Rs 5,24,138.64 crore in 1 day.

Exit Poll hinting Modi-win!

With almost all the major exit polls indicating a NDA win, all eyes are now on May 23 when counting of votes take place for Lok Sabha election 2019. The markets have responded positively on Monday to the exit polls held on Sunday evening. 

On Monday’s trading session, Abhijeet Bajpai, Co- Founder - Avighna Trades said, “The exit poll results are out and inline with the expectations been shared on different media and social media platforms. Market has reacted positively as the exit poll results supports the current government to continue. Although speaking historically the exit polls have been more wrong than right but it always affects market sentiments. Today markets are testing upper boundaries and will be totally dependent on news flow.”

Times Now - MVR: The poll here suggest NDA win with 306 seats, followed by UPA government having 132 seats, Mahagathbandhan (MGB) government with 20 seats and remaining 84 seats among others. Today’s Chanakya: Interestingly, the prediction reveals a huge win for NDA government with 350 seats, followed by UPA with 95 seats and 97 among others. 

Axis My India - India Today:  The poll intimates NDA win with 353 seats, UPA with 94 seats, MGB with 13 seats and others including 82 seats. C-VOTER: Exit polls estimate 287 seats in the hands of NDA government, UPA with 128 seats, MGB with 40 seats and 87 seats divided among others.