India shares hit file highs after exit polls predict Modi election win

Stock gauges in India hit intraday record highs Monday, with both the Nifty 50 index and S&P BSE Sensex Total Return index rising more than 3%.

Both indexes hit record level highs and logged their best intraday gains since Feb. 1, 2021, according to LGEG data.

Local exit polls over the weekend projected Prime Minister Narendra Modi and his Bharatiya Janata Party-led alliance were set for a rare third consecutive term in power.

The BJP-led National Democratic Alliance is expected to secure around 365 out of the 543 seats in the lower house of India’s parliament, according to local news channel NDTV’s exit poll summary. However, final results, expected on Tuesday, can diverge from exit poll projections.

With the incoming government expected to highly prioritize building up India’s infrastructure development, shares of Adani Group companies rose on the back of exit poll results as well.

Adani Ports surging by more than 10% and Adani Enterprises climbing 7%. Ambuja Cement, one of India’s leading cement companies, gained almost 6% as well.

“We will see a continued infrastructure build out in housing, transportation and on the digital side,” said Malcolm Dorson, a senior portfolio manager and head of emerging markets Strategy at Global X.