Indian stocks surge as opposition secures landslide win
The BSE Sensex index shot past the 25,000 mark, reaching a high of 25,376, as Indian stocks climbed as much as 4.5% on news that Narenda Modi’s investor-friendly BJP looked set for a landslide victory.
Indian banks such as Canara Bank and ICICI Bank leading the way, rising as much as 7%, as the index traded around 3.4% higher shortly before the close.
Meanwhile, the rupee jumped 0.9% to 58.75 against the US dollar, having traded above 60 for most of the year.
According to reports, the BJP party is leading in 250 of the 485 seats for which initial indications are available, while the ruling Congress party is leading in 49 seats, with the final results expected later. It must secure 272 seats of the total 543 available to have a majority.
The Congress party subsequently conceded defeat this morning, with Modi declaring on Twitter that “good days are here again”.
The BJP is seen as a more business-friendly alternative than the current ruling party, and aims to implement growth-boosting economic reforms.
Those expectations are partly due to the investor-friendly record of party leader Modi during his rule of the state of Gujurat.