Sensex, Nifty hit record highs as early trends hint at NDA win

A trader prays before entering BSE on May 23, 2019. Nifty, Sensex hit record high on opening as NDA crosses halfway mark for majority in trends.  

According to traders, investor sentiment was boosted by initial trends that suggested a win for the ruling NDA.

Equity markets opened strong on Thursday as initial trends showed BJP heading towards a strong majority — in line with most exit polls.

At 9:55am, the benchmark Sensex was trading at 39,833, up 722 points or 1.85%. The broader Nifty gained 214 points or 1.82% to touch 11,952.

 Interestingly, India VIX index, which is looked upon as a barometer of near term volatility, drooped over 26%.

According to traders, investor sentiment was boosted by initial trends that suggested a win for the ruling NDA.

Amid market euphoria, the rupee also appreciated 26 paise to 69.40 against the US dollar in opening trade.

The 30-share index zoomed over 2% to hit an intra-day high of 39,901.59. Similarly, the broader NSE Nifty too spurted more than 2% to touch a record of 11,968.95.

In the previous session, the Sensex ended 140.41 points, or 0.36%, higher at 39,110.21; and the broader NSE Nifty rose 28.80 points, or 0.25%, to 11,737.90.

Top Sensex gainers in morning trade include IndusInd Bank, SBI, L&T, PowerGrid, Yes Bank, Kotak Bank, ICICI Bank, RIL, HDFC, Bharti Airtel and Axis Bank, rallying up to 7 per cent.

While, Vedanta, ONGC, Bajaj Auto and Sun Pharma slipped up to 1.92%.

Meanwhile, foreign institutional investors sold equity worth ₹965.02 crore on Wednesday, while domestic institutional investors sold shares to the tune of ₹157.75 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.

Brent crude, the global benchmark, was trading at 70.58 per barrel, lower by 0.58 per cent.