MUMBAI, May 9 (Reuters): Indian shares hit a record high on Friday, posting their biggest daily gains since September on hopes the opposition Bharatiya Janata Party would win a majority in elections ending next week, sending blue-chips such as ICICI Bank sharply higher.
India's five-week-long elections wind up on Monday, with exit polls from media organisations to be issued after the last votes are cast. Actual results will be unveiled on May 16.
Polls have consistently shown the BJP and its prime ministerial candidate Narendra Modi ahead, raising expectations the opposition party, which is seen by markets as being more investor- and business-friendly, will either win or come close to an outright majority.
Sectors seen most likely to benefit from a Modi win led the gains. Infrastructure shares such as Ambuja Cement surged, while the NSE's banking sub-index hit a record high on hopes a new government would frame policies that would aid the economy.
"As the election D-day is approaching, the markets are rallying on anticipation of a favourable outcome," said Dinesh Thakkar, chairman and managing director of Angel Broking.
"In spite of the rally so far, most cyclical sectors are still trading well below their average valuations, and in a longer economic upturn scenario, valuations still leave enough room for healthy upsides."
The benchmark BSE index closed 2.91 per cent higher at 22,994.23 points. The index earlier gained as much as 3.15 per cent to a record high of 23,048.49 points, surpassing an high of 22,939.31 points hit on April 25.
The broader NSE index ended 2.99 per cent higher at 6,858.80 points. The index rose as much as 3.18 per cent, to hit a record high of 6,871.35 points, posted on April 25.
Indian shares hit record high on election outcome hopes
FE Team | Published: May 10, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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