Sensex, Rupee Surge As Exit Polls Predict BJP Win In Gujarat: 10 Points

The Sensex and Nifty surged today after a poll of exit polls predicted BJP victory in both Gujarat and Himachal Pradesh. The BJP will win Gujarat with 116 of 182 seats, according to an aggregate of exit polls.

Business | NDTV Profit Team | Updated: December 15, 2017 11:35 IST

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Sensex, Rupee Surge As Exit Polls Predict BJP Win In Gujarat: 10 Points

Exit Poll Results predicted BJP win in Gujarat and Himachal Pradesh.

The Sensex and Nifty surged today after a poll of exit polls predicted a BJP victory in both Gujarat and Himachal Pradesh. The BJP will win Gujarat with 116 of 182 seats, according to an aggregate of exit polls. The counting is on Monday for both Gujarat and Himachal Pradesh. The Sensex had been volatile amid caution in the run-up to the exit poll results. The rupee also strengthened today to 64.07 against the US dollar, as compared to Thursday's close of 64.34/dollar. The Sensex rose over 350 points while Nifty reclaimed 10,350.

Here are 10 points on today's rally in Sensex and Nifty:

The gains in the domestic stock markets were broad-based with all the BSE sectoral indices trading in the green. The rally was led by banking and metal stocks. HDFC Bank, Vedanta, Tata Steel and Hindalco were among the top gainers in Nifty, rising 1.5 per cent to 2 per cent.
Sanjiv Bhasin, EVP-Markets & Corp Affairs, IIFL, said some worries on the macro front could put a cap on the upside. On the downside, the Nifty has support at 10,000 levels and the index may trade in the 10,000-10,400 range in the near term.
Rising inflation amid a spike in global crude oil prices has been a worry for some analysts, who expect the Reserve Bank of India (RBI) to keep rates unchanged through 2018.
Retail inflation in November breached the Reserve Bank of India's medium-term target of 4 per cent, which could put pressure on it to raise policy rates in 2018. Annual inflation of 4.88 per cent last month was the steepest level in 15 months, government data showed on Tuesday, up from 3.58 per cent in October.
However, economic growth is set to accelerate further, say analysts, after growth recovered to 6.3 per cent in the second quarter. India's economic growth has bottomed out and the GDP growth will recover further to 7 per cent over the next few quarters, Standard Chartered said in a report. The bank forecast a growth rate of 6.5 per cent for the current fiscal year and 7.2 per cent in the year thereafter.
The third-quarter earnings of India Inc will be on the radar of analysts from next month.
India's second largest software services firm Infosys will announce its earnings for the October-December quarter on January 12, kicking off the Q3 earnings season.
The Budget, which is set to be unveiled on February 1, will also be a key factor to watch out for, Mr Bhasin said.
Further boosting the sentiment on the Dalal Street today, Asian shares edged higher, though sentiment was kept in check by Wall Street's weakness on concerns about the progress of US tax reforms.
The Federal Reserve - the US central bank - on Wednesday hiked interest rates but left its rate outlook for the coming years unchanged, a move largely perceived as a "dovish hike" by some analysts.