Mumbai: India’s benchmark equity index extended gains from the highest close in five months after two opinion polls predicted Prime Minister Narendra Modi’s ruling coalition would be close to claiming the seats needed to form a government when results of the national polls are announced in May.
The S&P BSE Sensex climbed 0.9 per cent to 37,374.32 as of 9:55 a.m. in Mumbai, advancing for a second day, while the NSE Nifty 50 Index also rose 0.8 per cent.
India’s general elections are scheduled between April 11 and May 19, with results announced on May 23. The Sensex surged 30 per cent in 2014, the most since 2009, when Modi’s party first formed a national government. Tensions between India and Pakistan have flared in recent weeks, stoking nationalistic sentiment on both sides.
“In the light of cross-border tensions, investors believe that a single majority government is possible and the odds of the ruling coalition retaining power has increased,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd.
- All except one of 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of real estate companies
- Power Grid Corp of India Ltd. and ICICI Bank Ltd. were the best performers on the main index
- Kalpataru Power Transmission Ltd. climbed as much as 3.8% after announcing plans to increase its stake in Shree Shubham Logistics
- Welspun Corp Ltd. surged as much as 6.7% after getting orders.
Also read: Weakening of Modi’s grip on power seen hurting Indian stocks