BENGALURU: Indian shares opened at record highs on Monday, after exit polls over the weekend projected a third term for Prime Minister Narendra Modi's government.

The NSE Nifty 50 was up 3.58% at 23,337.90 points, while the S&P BSE Sensex gained 3.55% to 76,652.84 points, as of 9:15 a.m. IST.

Both indexes hit record high levels and logged their best intraday gains since Feb. 1, 2024.

All 13 major sectors rose. The broader, more domestically-focussed small- and mid-caps gained about 3% each.

 

Exit polls

released on Saturday projected the Bharatiya Janata Party-led National Democratic Alliance will likely get a two-thirds majority in the 543-member lower house.

The polls followed the end of voting in India's six-week long general election where campaigning turned divisive, focused on religion and caste.

Exit polls in India have a patchy track record but will nevertheless boost market sentiment, analysts said.

"The exit poll numbers are very strong for the incumbent government and positive for market sentiment," said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.

Data released after market hours on Friday, which showed the economy grew a better-than-expected 7.8% in the January-March quarter, could also aid sentiment, said Solanki.

(Reporting by Bharath Rajeswaran in Mumbai; Editing by Varun H K)