Election Results 2024: Indian stock market benchmark indices Sensex and Nifty 50 are expected to open higher on Tuesday, when the 2024 election results are announced.
With vote counting set to begin soon for India’s 2024 Lok Sabha elections, Prime Minister Narendra Modi is set to win a third consecutive term. Indian stock markets hit record highs on Monday, with both the Sensex and Nifty 50 indices surging more than 3% each after exit polls suggested the ruling BJP-led coalition was likely to win again with a landslide majority.
Read live updates on 2024 election results here
US stocks ended mixed overnight as Asian markets fell while weak US manufacturing data raised hopes of an interest rate cut by the Federal Reserve this year.
According to CME’s FedWatch tool, traders now see a 59% chance that the Fed will start cutting rates in September, up from about 53% before the ISM data was released, Reuters reported.
Indian stock markets recorded their biggest one-day gain since January 2021 on Monday, driven by across-the-board buying as investors celebrated exit poll results for the 2024 Indian Lok Sabha elections that predicted a third consecutive victory for the NDA.
The Sensex index rose 2,507.47 points or 3.39 percent to close at 76,468.78, while the Nifty 50 index rose 733.20 points or 3.25 percent to close at 23,263.90.
Read also: Buy or sell on Lok Sabha election results: Vaishali Parekh recommends 3 stocks to buy today — June 4
“With exit polls showing a clear majority for the ruling party, favourable macroeconomic trends and robust corporate earnings, we expect the market to reach new highs. Long-term investment themes to focus on include manufacturing, capital investment, infrastructure and financials,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Key global market indications on Sensex today include:
Asian Market
Asian markets fell on Tuesday following mixed trading on Wall Street overnight.
Japan’s Nikkei Stock Average fell 0.4% and the TOPIX dropped 0.14%. South Korea’s KOSPI fell 0.28% and the KOSDAQ dropped 0.09%. Hong Kong’s Hang Seng Index futures opened lower.
Read also: Lok Sabha Election Results 2024: Will Nifty 50 hit a record today if Narendra Modi-led NDA retains power?
Give the gift of Nifty today
GIFT Nifty is trading around 23,560 levels, up nearly 150 points from the previous day’s closing price of Nifty futures, indicating a strong start for Indian stock market indices.
Wall Street
US stocks ended choppy on Monday due to weak manufacturing data and turmoil on the New York Stock Exchange.
The Dow Jones Industrial Average fell 115.29 points, or 0.30%, to 38,571.03, while the S&P 500 rose 5.89 points, or 0.11%, to 5,283.40. The Nasdaq Composite Index added 93.66 points, or 0.56%, to close at 16,828.67.
On the stock market, Nvidia shares rose 4.9%, while other big-cap stocks such as Apple, Amazon, Alphabet and Meta also rose. Microsoft and Tesla fell, according to Reuters. GameStop shares rose 21%.
NYSE glitches
The New York Stock Exchange experienced technical glitches that caused wild fluctuations in the stock prices of many companies, including Warren Buffett’s Berkshire Hathaway Inc. The instability led to a halt in trading for at least 60 NYSE-listed stocks, but the exchange later fixed the technical issues and resumed trading.
Please read this: NYSE halts trading of some stocks due to technical glitches
US PMI
The Institute for Supply Management (ISM) announced that the manufacturing Purchasing Managers’ Index (PMI) fell to 48.7 in May from 49.2 in April, and also down from an 18-month high of 50.3 in March.
U.S. Treasury Yields
Treasury yields fell as weak manufacturing data strengthened expectations that the Fed will cut interest rates this year. The benchmark 10-year Treasury yield fell 11 basis points to a two-week low of 4.39%.
Read also: European stocks rise after weekly drop as focus shifts to ECB
Dollar
The U.S. dollar fell to a three-week low on the back of weak PMI data. The dollar index, which measures the greenback’s value against six major currencies, fell 0.3% to 104.24 after earlier falling to a three-week low of 104.22.
Oil prices
Oil prices tumbled near four-month lows following OPEC’s plans to return crude to the market. Brent crude futures fell 0.31% to $78.12 a barrel, while West Texas Intermediate (WTI) crude was down 0.28% to $74.01.
(Quoted from Reuters)
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