Indian stocks hit record highs as exit polls suggest big Modi win

New Delhi CNN —

Indian stock markets chalked up new record highs on Monday as experts predicted a resounding victory for incumbent Prime Minister Narendra Modi in national elections.

India’s benchmark Sensex index, which tracks 30 large companies, and the broader Nifty 50 index each ended the day at their all-time closing highs, having gained more than 3%.

The surge comes after India concluded its mammoth, weeks-long election this weekend.

“I can say with confidence that the people of India have voted in record numbers to reelect the … government,” Modi said on X on Saturday, shortlyafter polls closed.

The 73-year-old ranon his economic record over the past 10 years, a period of robust growth for India.

Results will be declared on Tuesday. In India’s last election in 2019, Modi’s party won 303 seats in parliament. Analysts cited multiple local exit polls that point to a much bigger Modi victory this time as the major reason for the market optimism.

Employees work on a mobile phone assembly line at Padget Electronics Pvt., a subsidiary of Dixon Technologies Ltd., in Noida, India, on Friday, March 22, 2024.

Related article India records bumper economic growth as election draws to a close

“With the exit polls pointing towards 370 seats mark and ahead of street expectations of 320-350 seats, markets have reacted positively,” said Manish Chowdhury, head of research at brokerage StoxBox.

“We expect to see higher flows both from domestic as well as foreign investors going ahead,” he added.

The surge in stocks also comes after the country posted bumper economic growth numbers on Friday. The economy expanded by more than 8% in the fiscal year that ended in March, cementing India’s status as the world’s fastest growing