Sensex surges above 39,000

Key equity benchmarks extending strong intraday gains in early afternoon trade, with the Sensex moving above the psychological 39,000 level. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 1,088.09 points or 2.87% at 39,018.86. The Nifty 50 index was up 321.20 points or 2.82% at 11,728.35. Shares of index heavyweight Reliance Industries advanced. Metal and mining stocks gained. Sentiment was boosted after most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls.

Local stocks opened on a strong note after most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls. The Sensex regained the psychological 38,000 mark in opening trade. Stocks extended rally in morning trade. Key indices held strong intraday gains in mid-morning trade. Key indices held strong intraday gains in mid-morning trade.

The S&P BSE Mid-Cap index was up 3.13%. The S&P BSE Small-Cap index was up 3%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1797 shares rose and 536 shares fell. A total of 132 shares were unchanged.

Index heavyweight Reliance Industries surged 4.13% to Rs 1,318.

Metal and mining stocks gained. Vedanta (up 4.1%), JSW Steel (up 4.2%), Tata Steel (up 4.49%), Steel Authority of India (Sail) (up 8.08%), National Aluminium Company (up 4.71%), Hindustan Zinc (up 2.63%), Jindal Steel & Power (up 6.16%), Hindalco Industries (up 3.93%), NMDC (up 6.57%), Hindustan Copper (up 5.22%) edged higher.

Most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls with varying numbers. The poll of polls puts NDA safely above the majority mark at 312, while UPA is likely to score 110 seats and others will have to do with 98. The poll of polls is an average of various exit polls. An election exit poll is a poll among voters conducted immediately after they leave their polling stations. It is conducted by a number of organisations and is considered an indicator to which party might form the next government.

The 2019 polls, held from April 11 to May 19, will decide which party presides over the 17th Lok Sabha. Elections were held for 542 seats. A party or coalition needs 272 seats in parliament to form a government. The counting of votes is slated for May 23.

Overseas, Asian stocks were trading mixed on Monday as investors awaited the next chapter in the Sino-American trade dispute. Japan's economy grew at an annualized 2.1% in the first quarter, gross domestic product (GDP) data showed on Monday.

U.S. stocks bounced back from deep losses Friday but still closed lower as trade-related jitters overshadowed strong economic data. Meanwhile, the U.S. and Canada on Friday said they reached a deal to end tariffs imposed by Washington on aluminum and steel products from Canada, while Canada will remove all retaliatory tariffs.

In US economic data, consumer sentiment rose to a 15-year high of 102.4 in May, above April's reading of 97.2, according to the University of Michigan's consumer sentiment index. The Conference Board's estimate of leading economic indicators rose for the third straight month in April to 112.1, up 0.2% from March, the group said Friday. The survey of economic conditions is a collection of forward-looking data that attempts to predict future economic growth.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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