Indian equities staged a robust rally in the early morning trade on Monday, a day after exit polls of the Lok Sabha elections projected BJP-led National Democratic Alliance (NDA) to win with a majority.
S & P BSE Sensex is up by 1,318 points while the Nifty 50 is up by 308 points.
The polls predicted between 242 and 365 for the Prime Minister Narendra Modi-led NDA and between 77 and 164 for the opposition Congress-led United Progressive Alliance (UPA). A party would need atleast 272 seats to win and get a majority. The exit polls indicated a clear majority for the NDA government.
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A second term for Modi will mean endorsement of his policies on various fronts, especially on national security after tensions with Pakistan escalated earlier this year, rural reflation, infrastructure spending and streamlining of goods and services tax (GST).
However, investors are expected to remain cautious ahead of May 23, the day of counting.
The euphoria in Indian stocks was despite weak global cues. Asian equities were mixed as investors awaited the next chapter in US-China trade dispute.
Stock markets in Japan, China and Hong Kong were in the negative zone on Monday afternoon.
(with inputs from ANI)