The Hindu Business Line : Exit poll results boost Sensex by 71 points

STOCK prices, led by index heavyweights, rose across the board following exit polls after the first phase of the Lok Sabha elections that said the National Democratic Alliance would return to power at the Centre. The Indian entry plans of one of the US' biggest pension fund, CalPERS, also boosted market sentiment.

On the back of all-round buying in stocks, the BSE Sensex ended with a gain of 71.61 points (1.23 per cent) at 5,876.42. The NSE's S&P CNX Nifty Index gained 29.10 points (1.58 per cent) to end at 1,873.35.

Exit polls conducted by major television networks placed the ruling NDA ahead of the Congress and allies in 140 constituencies, which went to the polls in the first phase of the Lok Sabha elections.

After opening weak in the morning due to sluggishness in the international market, buying in major stocks pushed stock indices as the day progressed. The BSE Sensex opened flat at 5,803.70, and weakness in technology stocks in early trading dragged the index to the day's low of 5,783.92. However, fresh buying emerged immediately, lifting it to positive territory.

Brokers said there was across-the-board buying as most of the market players were comfortable with the ruling NDA. Good corporate results also resulted in fresh buying in key stocks. Good financial results by Cipla also boosted the market sentiment.

The mood in the market remained bullish at close. The advance-decline ratio (which was positive) on both the exchanges also indicated bullish tone for the market. However, the volume of business remained low, indicating less players in the market.

But the brokers feel that the stock prices are likely to move in a narrow range over the next few days. "Until the elections are over, there would be upward or downward movement in line with the exit polls," said a dealer.

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