Get All Access for $5/mo

Here's What Markets Reflected Post PM Modi's 3rd Swearing In The equity markets closed for Monday at INR 76,490.08 and INR 23,259.20 for BSE Sensex and NSE Nifty 50, respectively

By Paromita Gupta

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

BSE

On Monday, BSE Sensex and NSE Nifty 50 surged in trade to reach new lifetime highs at INR 77,014.69 and INR 23,319.30, respectively. This comes after PM Narendra Modi was sworn in for a third term on Sunday.

Notably, the stock market ended the previous week near record highs at INR 76,693.36 for Sensex and INR 23,290.15 for Nifty 50. The favorable sentiments were despite significant fluctuations caused by election-related uncertainty. This was also due to the Reserve Bank of India's decision to keep the repo rate unchanged and raise the GDP estimates for FY25.

Here are three things we noticed post-PM Modi's swearing-in of his 3rd term-

1. Union Cabinet Minister Amit Shah's "to buy before June 4"

Back in mid-May, the then Union Home Minister Amit Shah advised stock investors "to buy before June 4" as he expected the market to shoot up on the back of BJP's ambitious yet futile 'Abki Baar 400 Paar.'

"I can't anticipate stock market moves. But normally whenever a stable government is formed at Centre, the market sees a rally. I see 400-plus seat wins (BJP/NDA), a stable Modi government coming, and thus market rising," Shah told NDTV.

On June 3, the market surged as exit polls predicted a thumping majority for BJP and PM Modi. However, on June 4, the Sensex crashed by 4,300, leading to a loss of over INR 31 lakh crore when actual voting showed the BJP falling short of a majority.

While the Bharatiya Janata Party (BJP) failed to secure a mandate, falling short of 32 seats, it still went on to form the government as part of the National Democratic Alliance (NDA) winning 292 seats.

The positive sentiments were reflected as the markets opened on June 10 despite the collapse of the 400-plus seat possibility.

2. Key focus area stocks performance

In its election mandate 'Sankalp Patra,' BJP shared that its key focus areas were manufacturing, exports, MSMEs, and with-in infrastructure, there was a focus on housing, defense, railways, aviation, energy, roads, and EVs to name a few.

Housing and Urban Development Corporation (HUDCO) was up by 3.54 per cent at INR 258.00. Major steel players such as JSW Steel and Tata Steel saw their prices up by 0.66 per cent and 1.60 per cent, respectively.

UltraTech Cement was one of the biggest gainers with a surge of 3.25 per cent in its price.

Interglobe Aviation, the parent company for IndiGO, was up by 4.27 per cent; SpiceJet by 0.41 per cent, and EaseMyTrip by 0.48 per.

Apeejay Surrendra Park Hotels, parent company of The Park hotels was up by 1.38 per cent.

Tata Motors saw its share price go up by 0.44 per cent, TVS Motor by 1.30 per cent, and automotive components manufacturer Samvardhana Motherson by 5.01 per cent.

3. Indian rupee slips against movement in US dollar index

Indian rupee dipped from INR 83.321 on May 31 to INR 83.124 on June 3. The rupee was at INR 83.4925 against the U.S. dollar as of 09:50 a.m. IST, down 0.1 per cent from its close at INR 83.3725 on Friday.

The Indian rupee had gained in the last session but turned weak on Monday, despite a sustained uptick in local equity markets as the US dollar spiked above the 105 mark, as reported by Business Standard.

The equity markets closed for Monday at INR 76,490.08 and INR 23,259.20 for BSE Sensex and NSE Nifty 50, respectively.

Paromita Gupta

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Growing a Business

6 Effective Strategies to Secure Funding

Use these six proven strategies to secure the funding you need.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

In Just 3 Words, Kevin O'Leary Offers a Grim Outlook on Interest Rates and Inflation

The "Shark Tank" star appeared on Fox Business' "Sunday Night in America with Trey Gowdy" and said it is "hard to see" mortgage rates dropping any time soon.

Business News

Toyota Loses Over $15 Billion in Market Value After Investigation

The company was accused of falsifying engine test results that stopped shipment on three vehicle models earlier this year.

News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.