The Indian market is witnessing a significant surge on Monday following exit polls projecting that the NAD alliance could secure 350-370 seats, potentially facilitating the formation of a government for a third consecutive term. Market participants are buoyed by the prospect of a stable government at the center, anticipating policy continuity and further reforms.
The NSE benchmark Nifty50 index has surged by 2.81% to reach 23,164, while Sensex is edging closer to the 76,000 mark, up by 2.73%. Notably, the Bank Nifty index has experienced a rally of over 1300 points, reaching a level of 50,356.
Among the sectors dominating the day’s performance, the Nifty PSU Bank sector stands out. Suring over 6% to reach record highs, the Nifty PSU Bank Index has witnessed a remarkable 38% rally in 2024. All constituents of the index have posted gains ranging from 4.5% to 8.72% with SBI, India’s largest public sector bank (PSU), gaining over 7%, reaching a record high level. The stock is approaching the landmark level of Rs 900, with its market capitalization inching closer to Rs 8 lakh crore milestone. Currently, SBI holds the position of the third-largest bank by market capitalization, trailing behind HDFC Bank and ICICI Bank.
The stock of SBI had been trading in a narrow range over the past 20 days. However, on Monday, it managed to break above the pivot. Prior to this, it recorded its highest volume on Friday and settled above the 20-DMA convincingly. Additionally, it is trading above the moving average ribbon. The Elder Impulse System has formed a strong bullish bar, while the MACD is above the zero line, poised to give a bullish signal. The RSI entered into the strong bullish zone, with its Relative Strength Line surpassing the 21 EMA, signaling outperformance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jun 3, 2024, 11:44 AM IST
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