Mumbai: The market has its own rationale. On Monday, elated over the exit poll results, it needed little prodding and the benchmark Sensex zoomed over 1,422 points and the NSE Nifty surged 421 points. The 30-share index ended 1,421.90 points, or 3.75 per cent, higher at 39,352.67. During the day, the gauge hit a high of 39,412.56 and a low of 38,570.04.
The market feels reassured by the exit poll results, which are an indicator that there will be a stable government, rather than a precarious one that is at the mercy of the allies. This augurs well for the economy which faces formidable challenges ahead.
It is also heartening that after the long drawn out campaign, during which no policy decisions could be taken owing to the model code of conduct, the country would soon come out of auto pilot mode. A stable NDA government can immediately get down to the business of ushering in land and labour reforms and grappling with the aggravating problem of NPAs.
Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-decibel election outcome. The Indian rupee also appreciated by 64 paise to 69.59 against the US dollar during the day.
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