India stocks hit record highs after exit polls predict a decisive Modi election win
The Indian stock market soared to record highs on Monday following the release of exit polls that predicted a decisive victory for Prime Minister Narendra Modi in the upcoming general elections. The benchmark Sensex index surged over 1,400 points, or 3.75%, to close at an all-time high of 39,352, while the Nifty 50 index also hit a record high of 11,828.
The exit polls, which were released on Sunday evening after the conclusion of the seventh and final phase of voting, showed that Modi’s Bharatiya Janata Party (BJP) and its allies are likely to win a clear majority in the 545-seat Lok Sabha, the lower house of India’s parliament. If the predictions hold true, it would be the first time in over three decades that a single party has been able to secure a majority on its own.
Investors and analysts have welcomed the exit poll results, with many seeing a Modi victory as a positive outcome for the Indian economy. Modi, who came to power in 2014 on a platform of economic reform and development, is widely seen as a pro-business leader who has implemented several key reforms aimed at boosting growth and attracting foreign investment.
Under Modi’s leadership, India has emerged as one of the fastest-growing major economies in the world, with GDP growth averaging around 7% per year. The government has also taken steps to improve the country’s business environment, including the implementation of a nationwide goods and services tax (GST) and the introduction of a bankruptcy code to streamline the resolution of insolvency cases.
Investors are hopeful that a second term for Modi will see the continuation of these policies and the introduction of further reforms to spur economic growth. The stock market rally on Monday was driven by strong buying in banking, financial services, and infrastructure stocks, which are expected to benefit from a stable government and continued economic reforms.
However, some analysts have cautioned that the exit poll results are not a guarantee of the final outcome of the elections, which are scheduled to be announced on May 23. While the exit polls have been generally accurate in the past, there is still a degree of uncertainty surrounding the final results, and investors will be closely watching the developments in the coming weeks.
Overall, the mood in the Indian stock market is optimistic following the release of the exit polls, with investors hopeful that a decisive Modi victory will provide a boost to the economy and pave the way for further growth and development in the country. If the predictions hold true, India could be set for a period of stability and prosperity under Modi’s leadership.