By Kosaku Narioka
India's benchmark stock index hit a record high, driven by growing expectations that Narendra Modi will likely win a third term as the country's prime minister and strong economic growth.
The Sensex was recently 2.7% higher at 75976.26 on Monday after hitting a new all-time intraday high of 76738.89 earlier.
Modi is widely expected to win a third term when the nation's general election votes are counted on Tuesday.
Exit polls indicate Modi's Bharatiya Janata Party-led National Democratic Alliance will probably form a stable government, Nomura analysts said in a research note. That suggests policy continuity and should drive inflows from foreign institutional investors, they said.
If exit polls are correct, "this would mean Prime Minister Modi has obtained a stronger mandate to govern," Michael Wan, senior currency analyst at MUFG Bank, said in a note. Indian stocks will likely rise and the rupee is expected to strengthen after the election results, he said.
India's economy grew by a better-than-expected 8.2% in the year ended March, compared with a 7.0% expansion the previous year, fueled by government spending on infrastructure and momentum in manufacturing and construction, government data showed Friday.
--Ronnie Harui in Singapore contributed to this article.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
06-03-24 0235ET
