Narendra Modi, India’s prime minister, center, during a campaign rally in Agra, Uttar Pradesh, India, on Thursday, April 25, 2024. Modi doubled down on his attacks against the main opposition party by using language critics say sows division between the country’s Hindu majority and Muslim minority. Photographer: Prakash Singh/Bloomberg via Getty Images
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Stock gauges in India hit intraday record highs Monday, with both the Nifty 50 index and S&P BSE Sensex Total Return index rising more than 3%.
Both indexes hit record level highs and logged their best intraday gains since Feb. 1, 2021, according to LGEG data.
Local exit polls over the weekend projected Prime Minister Narendra Modi and his Bharatiya Janata Party-led alliance were set for a rare third consecutive term in power.
The BJP-led National Democratic Alliance is expected to secure around 365 out of the 543 seats in the lower house of India’s parliament, according to local news channel NDTV’s exit poll summary. However, final results, expected on Tuesday, can diverge from exit poll projections.
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Nifty 50 hits record intraday high
With the incoming government expected to highly prioritize building up India’s infrastructure development, shares of Adani Group companies rose on the back of exit poll results as well.
Adani Ports surging by more than 10% and Adani Enterprises climbing 7%. Ambuja Cements, one of India’s leading cement companies, gained almost 6% as well.
“We will see a continued infrastructure build out in housing, transportation and on the digital side,” said Malcolm Dorson, a senior portfolio manager and head of emerging markets Strategy at Global X ETFs, to CNBC.
Shares for the State Bank of India climbed by almost 10%, while ICICI Bank and HDFC Bank gained more than 2%.