Mumbai: A day after exit polls predicted NDA’s victory with an absolute majority in the parliament, Indian rupee appreciated 79 paise to 69.44 against the US dollar in opening trade on Monday. The Sensex advanced over 960 points during the early trade hitting an intra-day high of 38,892.89.
At 9.40 AM, the BSE Sensex was trading 749.37 points or 1.98 per cent higher.The benchmark Sensex opened at 38,701.18 from its previous close of 37,930.77. The Nifty was trading at 11,615.70, up 208.55 points or 1.83 per cent. It opened at 11,651.90 from its previous close of 11,407.15.
Forex traders said investors welcomed the exit poll results that predict a thumping majority for the current BJP-led government. Twelve of 14 exit polls had predicted the NDA getting a full majority with seats ranging from 282 to 365. A party or an alliance needs 271 seats to form the government as Lok Sabha elections have been held on 542 of 543 seats.
“I expect another 2-3% rally in the market in the next 3-4 days based on the cue,” a leading portal quoted Samrat Dasgupta, a fund manager at Esquire Capital Investment Advisors as saying.
“But once the results are out on Thursday, even if it is as expected, I don’t see much upside to the market ,” he added.
(With agency inputs)