After opening the day on a positive note, Indian share markets continued the momentum as the session progressed and ended on a firm footing.

Indian benchmark equity indices Nifty 50 surged past 23,000 and BSE Sensex crossed the 76,000 mark as they opened at a record high on Monday, buoyed by exit polls predicting a third term with a sizable mandate for Prime Minister Narendra Modi

At the closing bell, the BSE Sensex stood higher by 2,500 points (up 3.6%).

Meanwhile, the NSE Nifty closed higher by 777 points (up 3.5%).

SBI, ONGC, and Adani Ports were among the top gainers today.

Eicher Motors, HCL Tech, and Sun Pharma on the other hand, were among the top losers today.

The GIFT Nifty was trading at 23,480, up by 792 points, at the time of writing.

The BSE MidCap index ended 3.7% higher and the BSE SmallCap index ended 2% higher.

Sectoral indices are trading positively with socks in the energy sector, power sector, and oil & gas sector witnessing the most buying.

Shares of Bajaj Auto, ABB India, and Hindustan Aeronautics hit their respective 52-week highs today.

The rupee is trading at 83.16 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 71,670 per 10 grams.

Meanwhile, silver prices were trading 0.4% lower at Rs 91,226 per 1 kg.

Here are five reasons why Indian Markets are rising today

#1 Exit Polls Prediction

Exit polls released after the last phase of voting on June 1, 2024, unanimously predicted a clear majority for the ruling Bharatiya Janata Party (BJP) and forecast the third term for PM Modi.

The average of all the Exit polls forecast 350-370 seats for the ruling National Democratic Alliance (NDA).

#2 Heavyweights Drive Sentiment

All 30 Sensex stocks and 45 Nifty50 stocks were trading in the positive zone on Monday, June 3. Reliance Industries, L&T, State Bank of India, ICICI Bank, HDFC Bank, and Axis Bank were the top contributors towards the benchmarks' rally, surging between 3% and 7%.

Percentage-gain wise, Power Grid, Adani Ports, NTPC, BPCL, SBI, Shriram Finance, Adani Enterprises, L&T, ONGC, Axis Bank, and Ultratech Cement zoomed in the range of 5% to 10%.

#3 The Rupee Factor

The Indian rupee rose 42 paise to 83 against the US dollar in early trade after exit polls indicated a third term for Prime Minister Narendra Modi.

#4 Positive Global Markets

Markets across Asia-Pacific were ruling higher after China's manufacturing activity expanded at its fastest pace in nearly two years. Hang Seng was quoting 2.4% higher, Kospi was up 1.9%, Nikkei 1.2%, and ASX200 0.7%.

#5 FII Buying

The Foreign institutional investors (FIIs) turned net buyers on the final day of the month, as they bought Indian equities worth Rs 16.1 bn, while domestic institutional investors bought equities worth Rs 21.1 bn on 31 May.
 

Bajaj Auto Stock Extends Gains

In news from the auto sector, Bajaj Auto shares traded 4% higher at Rs 9,444 to hit a new 52-week high on 3 May, extending gains for the second session in a row, buoyed by exit polls predicting a resounding victory for the Bhartiya Janata Party (BJP).

This comes despite the two-wheeler and three-wheeler major reporting muted sales in May after selling 3,55,323 units, as compared to 3,55,148 vehicles sold during the same month last year.

The company's two-wheeler domestic sales witnessed a 3% decline of 1.9 lakh units, down from 1.94 lakh units sold in May in the previous year. However, exports in the same category reported a 4% increase to 1.17 lakh units, company data showed.

On the commercial vehicles (CV) side, domestic sales rose 9% to 36,747 while exports dropped 6%.

The Triumph maker is on track to launch six new models in the first half of FY25, beginning with the biggest Pulsar in early May.

The Pune-based two-wheeler major wants to set a "relentless pace" and ensure that it is always top of mind of this customer, the management stated in its post-results conference call.

FY24 was a year full of records for the automobile giant as it clocked the highest-ever revenue, EBITDA, and net profit. Furthermore, the company has clocked record Pulsar and KTM volumes in India in FY24.

PFC & REC Zoom 12%. What's Driving Rally?

Moving on, shares of REC Ltd gained as much as 12% on June 3 to hit a fresh record high REC of Rs 602.75 on the National Stock Exchange (NSE) after the company's board approved fundraising by way of non-convertible debentures (NCDs) on a private placement basis up to an aggregate amount of Rs 1.4 tn.

REC is a government-owned infrastructure finance company in India. They fund projects in power (including new technologies) and non-power sectors (roads, metro, IT, etc.) for both government and private companies.

The Maharatna company will raise funds through unsecured/secured, non-convertible bonds/debentures of up to Rs 1.5 tn.

Meanwhile, the company's board has also approved the appointment of Harsh Baweja as the chief financial officer (CFO) and director of finance.

Another PSU financier skyrocketed 12% on 3 June. Shares of Power Finance Corporation (PFC) hit a fresh record.

The sharp rally came as exit polls indicated a huge win for the NDA government resulting in market experts predicting a political and policy continuity. This sentiment suggests the potential for continued outperformance of PSU shares.

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