Markets open at record high as counting of votes begin for Lok Sabha elections
Markets at record high: Stock futures edged higher and the rupee remained steady as voting commenced in the Lok Sabha Elections 2024, with Prime Minister Narendra Modi widely expected to secure a decisive mandate and a rare third term.
Exit polls have projected a significant win for PM Narendra Modi, which led markets to soar to record highs on Monday, buoyed by investor optimism for sustained economic growth.
On Tuesday, the NIFTY 50 index futures rose by 0.21% in early trade, according to NSE International Exchange data, and were poised for another record high opening. The Nifty index closed up 3.25% at 23,263.90 points on Monday, after reaching a record high of 23,338.70 following the exit poll results.
The BSE index also saw significant gains, closing up 3.39% at 76,468.78 points on Monday, just shy of its lifetime peak of 76,738.89 reached earlier.
Early trade in the non-deliverable forwards (NDF) market indicated a slightly firmer rupee on Tuesday, with the rupee trading at 83.1000 to the dollar, compared to a close of 83.1425 in the spot foreign exchange market on Monday. The rupee had risen 0.4% on Monday.
"Markets have rallied around the expected election results, and it is very hard not to be optimistic about India," said Vivek Bhutoria, portfolio manager for emerging market equities at Federated Hermes. "Policies are being put in place to attract investments, and the realignment of the global supply chain is set to benefit India over time. We are already seeing some benefits in terms of electronics and chemical exports."
- With inputs from agencies
