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dpa/reuters
New Delhi
India’s stock markets rallied Monday after exit polls predicted that Prime Minister Narendra Modi was on course to retain power with a majority in parliament.
The benchmark 30-share Sensex index on the Bombay Stock Exchange rose by 1,421.90 points, up 3.75 per cent and ended trade at 39,352 points.
Exit polls released after India’s seven-phase voting concluded Sunday showed Modi’s National Democratic Alliance projected to win anywhere between 277 to 350 seats in the 545-member parliament.
The broader 50-share S&P CNX Nifty on the National Stock Exchange also rose by 421.10 points, or 3.69 per cent to close trade at 11,828.25.
Some market analysts are expecting the surge in markets to continue until counting for election results begins Thursday. The markets favour a stable government and continuity of economic reforms, market analyst Deven Choksey told broadcaster NDTV.
The trading till Friday was marked by heavy volatility owing to uncertainty over the elections.
India’s bonds and rupee have both held in a tight range in recent weeks despite the positive underlying bias as investors stayed on the sidelines awaiting the election outcome.
Low inflation and foreign fund inflows have aided the rupee while the central bank’s efforts to ensure adequate liquidity in the banking system through forex swaps and open market bond purchases have helped bonds.
The partially convertible rupee ended at 69.7450 per dollar, after rising to 69.3550 in opening deals, at which point it was up 1.2 percent on the day. It still closed 0.7% higher versus Friday’s close of 70.22.
Investors expect the rupee to hold in a 69-72 per dollar range in the medium term with global oil prices having the potential to push it lower. Further gains in the rupee will also depend on flows into the stock markets.
The benchmark 10-year bond yield closed trading at 7.29%, down 7 basis points on the day after briefly falling to a low of 7.27%.
New Delhi
India’s stock markets rallied Monday after exit polls predicted that Prime Minister Narendra Modi was on course to retain power with a majority in parliament.
The benchmark 30-share Sensex index on the Bombay Stock Exchange rose by 1,421.90 points, up 3.75 per cent and ended trade at 39,352 points.
Exit polls released after India’s seven-phase voting concluded Sunday showed Modi’s National Democratic Alliance projected to win anywhere between 277 to 350 seats in the 545-member parliament.
The broader 50-share S&P CNX Nifty on the National Stock Exchange also rose by 421.10 points, or 3.69 per cent to close trade at 11,828.25.
Some market analysts are expecting the surge in markets to continue until counting for election results begins Thursday. The markets favour a stable government and continuity of economic reforms, market analyst Deven Choksey told broadcaster NDTV.
The trading till Friday was marked by heavy volatility owing to uncertainty over the elections.
India’s bonds and rupee have both held in a tight range in recent weeks despite the positive underlying bias as investors stayed on the sidelines awaiting the election outcome.
Low inflation and foreign fund inflows have aided the rupee while the central bank’s efforts to ensure adequate liquidity in the banking system through forex swaps and open market bond purchases have helped bonds.
The partially convertible rupee ended at 69.7450 per dollar, after rising to 69.3550 in opening deals, at which point it was up 1.2 percent on the day. It still closed 0.7% higher versus Friday’s close of 70.22.
Investors expect the rupee to hold in a 69-72 per dollar range in the medium term with global oil prices having the potential to push it lower. Further gains in the rupee will also depend on flows into the stock markets.
The benchmark 10-year bond yield closed trading at 7.29%, down 7 basis points on the day after briefly falling to a low of 7.27%.
