Stock Market: 'Modi Stocks' in Spotlight as Exit Polls Hint at BJP Victory

The exit polls' prediction of a huge victory for the BJP-led NDA may have an impact on the stock market today. Investors are expected to invest in the stock market in anticipation of the Modi government's hat-trick. 'Modi stocks' are likely to see a bumper jump today.

Also Read | Sensex, Nifty at all-time high as Exit Polls predict BJP win

If the results of the Lok Sabha elections on June 4 are similar to the exit polls, the market may experience a boom. Shares of 54 companies, dubbed 'Modi Stocks' by the brokerage company, can see a rise today.
 
Gain for these Companies
Top gainers in the Sensex pack included L&T, NTPC, NHPC, PFC, ONGC, IGL, Mahanagar Gas, Ashok Leyland, Ultratech, L&T, Bajaj Finance, Max Financials, Zomato, DMart, Bharti Airtel, Indus Towers, Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank.

Major PSU Stocks to Keep an Eye On 
HAL, Hindustan Copper, NALCO, Bharat Electronics, SAIL, BHEL, REC, HPCL, BPCL, GAIL, PFC, IRCTC, PNB, SBI, Canara Bank.
 
Reason for the Boom
"PSU shares may rise by June or July. A similar pattern was observed in the last two elections. PSU stocks had rallied after the election results. 'Modi Stocks' has overtaken Nifty and this trend is likely to continue if the present government comes back to power with a strong majority," international brokerage company CLSA said in a statement.
 
Market Today
Market analysts said all eyes are now on the outcome of the Lok Sabha elections scheduled for Tuesday. Earlier on Monday, the exit polls are expected to evoke reactions from all investors. It is believed this that could lead to a strong rally in the market and the Nifty could cross the 23,000 level. PSU stocks may see a bullish phase. 

However, experts also said that if the result is reversed, there may be some 'nervousness' in the market.
 
Addressing Uncertainties
If the final results are the same as the exit polls, then uncertainty will be removed from the market, according to a report by MK Research. Foreign investors who have moved away from the Indian market may be attracted back. Foreign portfolio investors pulled out Rs 25,586 crore from Indian equities in May due to uncertainty over the outcome of the general elections and the good performance of the Chinese market. Foreign portfolio investors (FPIs) had invested Rs 35,098 crore in equities in March and Rs 1,539 crore in February, according to depositories data. 
 
(Note: This contains general information; this is not investment advice; the opinions of experts are their personal opinions; it is necessary to consult experts or experts in this field before making any kind of investment.)