The Indian stock market is expected to open higher today (June 3) after a five-day losing streak. The exit polls for the Lok Sabha elections, India’s general elections, have predicted a landslide victory for the incumbent Bharatiya Janata Party (BJP). This news, coupled with upbeat India’s GDP growth data released on Friday, has boosted investor sentiment.
On Friday, the domestic equity indices closed with minor gains. The Sensex rose by 75.71 points to end at 73,961.31, while the Nifty 50 settled 42.05 points, or 0.19%, higher at 22,530.70. The positive trend is expected to continue today, with both the Sensex and Nifty likely to open with significant gains.
The exit polls have predicted that the BJP-led National Democratic Alliance (NDA) will win a comfortable majority in the Lok Sabha, which would give the government a strong mandate to continue its economic reforms. The positive GDP data, which showed that the Indian economy grew by 7.8% in the first quarter of 2019-20, has also boosted market sentiment.
In addition to these domestic factors, positive global market cues are also expected to support the Indian stock market today. The US stock market closed higher on Friday, with the S&P 500 index gaining 0.6%. The positive momentum in global markets is likely to spill over into the Indian market today.
