Investors Earn Rs 6 Lakh Crore As Markets Cheer PM Modi’s Win; Breaks 21-Year Record!
May 23, 2019 has turned out into a historic day for Indian stock markets, as investors made a windfall of earnings, and broke several records.
Stock investors and traders earned whooping Rs 6 lakh crore within 2 days, as markets cheered for PM Modi’s win, and bought shares at an unprecedented pace and intensity.
What other factors contributed to these unexpected earnings, which broke 21-year-old record?
Keep reading to find out!
Stock Traders Earned Rs 6 Lakh Crore In A Week
Election results were announced on May 23rd, that is Thursday, and by the time markets closed on Friday evening, investors had earned Rs 6 lakh crore, triggered by optimism and a new hope.
This is the best after-election-performance in the stock market, since 1998.
Benchmark indices Sensex and the Nifty50, both closed at a record high on Friday evening, as the businesses cheered for PM Modi’s 2nd term as the leader of India.
BJP won 303 seats out of 542, thereby registering a thumping victory, whose scale can be only matched by Rajiv Gandhi’s win in 1984.
The absolute mandate, and massive margin of victory by BJP signals stability in the market, and this was the main reason why both Sensex and the Nifty50 ended with record high, and investors made Rs 6 lakh crore profit.
Vishal Kampani, managing director, JM Financial Group said, “Stability in the macro environment will give legroom to the corporate houses to plan medium-to-long term growth and instill confidence in foreign investors,”
Sensex Records Unprecedented Numbers
The benchmark sensex ended at 623 points, or 1.61% higher, to close at 39,435.
Nifty50 jumped 187 points, or 1.6% higher, to close to 11,844.
This was Sensex’s best ever performance in last 7 weeks, and best after-election-performance in 21 years.
On Thursday, the day of the election results, Nifty crossed 12,000 mark, and Sensex crossed 40,000 mark for the first time in history.
Rupee too jumped by 0.07 paisa against the dollar to end at Rs 69.53, against Rs 70 earlier.
The jump in the value of rupee against the dollar can be also attributed to the fact that foreign direct investors invested Rs 2,026 crore on Friday alone. This way, FDI pumped in Rs 5,891 crore in the last week.
Brent crude oil prices have also declined by 4.5%, which may have added fuel, and helped the market to breach unprecedented numbers.
We will keep you updated, as more details come in.