A rally on the cards

Local stocks are likely to open on a strong note after most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 265 points at the opening bell.

Most exit polls forecast a majority for the ruling BJP-led NDA in Lok Sabha polls with varying numbers. The poll of polls puts NDA safely above the majority mark at 312, while UPA is likely to score 110 seats and others will have to do with 98. The poll of polls is an average of various exit polls. An election exit poll is a poll among voters conducted immediately after they leave their polling stations. It is conducted by a number of organisations and is considered an indicator to which party might form the next government.

Elections to 542 seats of the 543-member Lok Sabha ended Sunday, 19 May 2019. The Election Commission has deferred election for Vellore in Tamil Nadu over allegations of misuse of money power. The counting of votes is slated for May 23.

Overseas, Asian stocks were trading mixed on Monday as investors tried to catch their breath following another week of escalating trade tensions between the United States and China. Wall Street ended lower on Friday as continuing trade tensions pulled industrial and tech shares down.

Back home,the market ended with sharp gains on Friday, supported by strength in private banks and auto shares. The Sensex rose 537.29 points or 1.44% to settle at 37,930.77, its highest closing level since 7 May 2019. The Nifty 50 index rose 150.05 points or 1.33% to settle at 11,407.15, its highest closing level since 7 May 2019.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 1057.82 crore on Friday, 17 May 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1809.76 crore on Friday, 17 May 2019, as per provisional data.

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