Mumbai. BSE Sensex and NSE Nifty may rise on Monday amid expectations of the BJP-led coalition government coming to power for the third time in all exit polls (Exit Poll 2024). Experts believe that with the re-election of the Modi government, economic reforms will continue in the future as well and this will give a big boost to the country's financial market.

However, some economists also believe that since exit polls have a poor record and often do not match the results, investors may remain cautious when the market opens. Tridip Bhattacharya, Chief Investment Officer, Equity, Mumbai-based Edelweiss Mutual Fund, said, "Exit polls indicate political stability and strong mandate and this is a big lifesaver for Indian equity markets. Investors should be prepared for sustained economic growth, strong capital expenditure cycle and other reforms in the next five years."

HDFC Bank may get benefit

Aishwarya Dadhich, Chief Investment Officer of Fident Asset Management, said that India's S&P BSE Sensex and NSE Nifty 50 indexes may rise on Monday. Neeraj Dewan, director of brokerage firm Quantum Securities, said that HDFC Bank, Bajaj Finance, Infosys and TCS along with those companies which have foreign stake can benefit from this rise.

Foreign investors withdrew three billion dollars in May

Vikas Sachdeva, managing director of investment firm Sundaram Alternatives, said that in the long term, capital goods, infrastructure and commodity companies can benefit from this. Neeraj Dewan believes that foreign investors have withdrawn three billion dollars in May and increased hedging before the elections started. However, after the election results, these investors can come back once again in a big way.

Such flows would add pressure on the rupee, which the central bank is trying to curb through market intervention, and would lead to a rise in bond prices, said Madhavi Arora, chief economist at Emkay.

Government will continue to reduce fiscal deficit

UBS Securities said in a note released on May 24 that drastic reforms such as changes in land and labour laws will depend on the number of seats won by the BJP. Notably, in its manifesto, the BJP promised to create jobs, boost infrastructure and manufacturing, and expand welfare programmes, but refrained from promising changes in land and labour rules.

Support of state governments needed

Such reforms will require the support of state governments. Economists also expect the Modi-led government to continue reducing India's fiscal deficit, thereby strengthening its economic fundamentals.

Market cap of eight companies decreased by Rs 2.08 lakh crore

Last week, the market capitalization of eight of the 10 most valuable companies declined by Rs 2.08 lakh crore. Reliance Industries, TCS and Infosys suffered the biggest losses. The market cap of Reliance Industries fell by Rs 67,792.23 crore to Rs 19,34,717.12 crore. While the market cap of TCS fell by Rs 65,577.84 crore to Rs 13,27,657.21 crore. The two companies whose market cap increased are SBI and HDFC Bank.