India’s main stock index surged more than six percent to a record above the key 25,000-point level, while the rupee hit an 11-month high, as right-wing opposition leader Narendra Modi headed for a landslide election victory.
The Bombay Stock Exchange index, known as the Sensex, soared 6.15 percent to 25,375.63 as results showed pro-business Modi and his Hindu nationalist Bharatiya Janata Party (BJP) expected to score a huge win after a marathon poll.
The Sensex later trimmed its gains to trade up 2.06 percent at 24,397.05 points in the afternoon.
“Markets are following indications the BJP and its allies will have a thumping victory,” Harendra Kumar, head of brokerage Elara Capital, said. “This is crucial for their ability to push key (economic) reforms.”
Modi has ridden a wave of voter support with his message of jobs, development and revival of an economy that is growing a decade-low levels.
