Sensex, Nifty Soars to Record High as Modi 3.0 Government Nears Formation

by | Jun 7, 2024 | 0 comments

The stock market of India has experienced a remarkable increase as the Modi 3.0 government approaches for formation. Both Sensex and Nifty rose significantly with a record high of Sensex and nearness to its highest level by Nifty. This article will explain the factors behind this surge and the broader implications in the market.

Sensex and Nifty Soars

Record Highs Achieved

On a significant day for Indian stock markets, Sensex rose to an all-time high of 76,787 points while Nifty 50 climbed within 25 points of its peak at 23,338 during afternoon trades. The rally came as the market positively responded to Modi 3.0’s imminent formation.

Market Performance

By 2:42 pm, Sensex had gone up by 1,415 points or 1.9 percent to stand at 76,489 points while simultaneously Nifty-50 went up by 413 points or by 1.8 percent making it reach at 23,234 levels.Potentially strong results were seen in BSE Midcap outperformed and BSE Smallcap advanced more than two percentage respectively

RBI’s Monetary Policy and GDP Forecast

Policy Rates Unchanged

The Reserve bank of India (RBI) Monetary Policy Committee decided to hold policy rates steady at six-and-a-half per cent for the eighth successive time which gave some comfort to investors

Upgraded GDP Forecast

India’s GDP growth rate forecast for FY2025 was also raised from seven per cent o seven point two per cent by RBI. V K Vijayakumar – Chief Investment Strategist at Geojit Financial Services says that this upgraded forecast is good news for corporate earnings and therefore for the stock market as well.A positive outlook on GDP growth also contributed to bullish sentiments in the market.

Sectoral Highlights

IT Sector Leads the Rally

IT stocks’ unexpected rally was listed among reasons why benchmarks surged. Nifty IT index soared by around three point five percent led by major entities such as Infosys , Tech Mahindra including TCS.Valuations looking fair were mentioned as one reason explaining renewed interest into information technology stocks, which have hardly moved up during the last year and a half to two years.

Other Sectoral Gains

Other sectors also saw strong performance. Nifty Auto, Nifty Infra and Nifty Realty indices all gained more than 2 percent.The gains indicate that the market is doing well across different sectors, which shows a general positive sentiment from investors.

Market Sentiment and Broader Implications

Positive Market Sentiment

The optimism of the investors can be seen through the surge in Sensex as well as Nifty. The confidence in the market has been boosted by this expectation of stable governance continuing under Modi 3.0. In addition to this, RBI kept policy rates steady and raised GDP estimates for this rally’s firm foundation.

Broader Market Trends

In broader markets, 2,584 shares advanced while 783 shares declined with 91 remaining unchanged indicating an overall positive momentum with more gainers than losers.

Expert Insights

Market experts are confident that political stability will continue and that the economic outlook remains positive for Indian stock market. Rally in IT industry along with those in auto, infrastructure and realty showcases markets resilience and potential for future expansion.


As the formation of the Modi 3.0 government approaches, Sensex and Nifty have gained significantly; this reveals the positive mood in the market and investors’ trust in Indian economic perspectives. India’s stock market has a higher GDP forecast, stable policy rates, and strong sectoral performances; it is ready to expand further. In order to make informed decisions within this fluctuating market, people must be very cautious about these happenings.


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