Based on the findings of the exit poll, the GIFT Nifty is up more than 800 points, signaling a record high start for the Nifty 50 today, June 3.
The Nifty 50 reached an all-time high of 23,110.80 on Monday, May 27, one week ago. Profit booking persisted until the end of the week, though, and on Friday, May 31, it eventually closed in the green at 22,530.7, 580 points behind its all-time high.
Market Recap: Investor Sentiment and Predictions Post-Election
Due to the market’s weakness last week, investors lost over 8 lakh crore, and the index finished the week 2% lower. On Monday, June 3, at 8:20 AM, the GIFT Nifty was up 832 points at 23,520.
As expected by the market, the exit poll results indicate that Prime Minister Narendra Modi will serve a record third term. In addition, a number of trading houses predicted that the BJP would get between 290 and 310 seats on its own and subsequently gain additional seats through alliances.
According to sources, Jefferies thinks the small- and mid-cap stocks (SMID) can take a break in the upcoming term following a rise spurred by the election results. Furthermore, according to the brokerage business, the trailing largecap stocks are in a favorable tactical position.
Also Read: Exit Polls 2024: BJP-led NDA predicted to win over 350 seats
Jefferies’ Investment Outlook: Strategic Focus on Large-Cap and Preferred Sectors
According to sources, Jefferies believes that large-cap equities like Reliance Industries and private banks may benefit from a potential reversal in foreign institutional investors’ (FII) holdings.
The overseas brokerage firm prefers Real Estate, Industrials, and Power as their preferred sectors over the long run. It feels that private financials such as HDFC Bank, IndusInd Bank, and Kotak Mahindra Bank trade at substantial discounts when it comes to individual equities.
Jefferies like to own equities in companies like TVS Motor Company, ONGC, Coal India, Eicher Motors, and some cement stocks like Shree Cement and ACC.
