On Monday, the Indian stock market indices, Sensex and Nifty 50, surged to record highs following exit polls suggesting a historic third term for Prime Minister Narendra Modi.

The Nifty 50 soared by 3.58%, while the Sensex increased by 3.55%, reaching unprecedented levels. The Sensex climbed 2,621.98 points to 76,583.29, and the Nifty rose 807.20 points to 23,337.90.

All Sensex-listed stocks saw gains, with notable performers including Power Grid, Adani Ports, Shriram Finance, L&T, NTPC, SBI, Axis Bank, M&M, ICICI Bank, and Ultratech Cement, each rising between 3% and 7%.

For the first time, the Bank Nifty index surpassed the 50,000 mark. Additionally, the Nifty Smallcap 100 and Nifty Midcap 100 indices each increased by nearly 3%.

Leading the sectoral gains were Nifty Energy, Nifty PSU Bank, and Nifty Realty, which each rose between 4% and 5%.

This market rally followed a break in a five-day losing streak on May 31, where the Sensex closed 75 points higher.

Analysts predict that the market volatility experienced in May will diminish once the election results are announced on June 4.

This surge also comes in light of an 8.2% economic growth rate in the 2023-24 fiscal year, according to the National Statistical Office (NSO).

Exit polls for the 2024 Lok Sabha elections predict a significant victory for the BJP, with Prime Minister Narendra Modi expected to secure a third term. Pollsters suggest the NDA could exceed its 2019 performance, potentially winning between 350-380 seats. The India Today-Axis My India poll forecasted 361-401 seats for the NDA and 131-166 seats for the INDIA alliance. Prime Minister Modi had set a goal of 370 seats for the BJP and 400 for the NDA.