Indian markets set to gain as polls show landslide Modi win

Indian stocks, bonds, and the rupee are expected to rise on Monday following exit polls showing a strong victory for Prime Minister Narendra Modi’s party, Bloomberg reported on Sunday.

The polls indicate that the Bharatiya Janata Party-led alliance is likely to secure a majority in the lower house of parliament. This outcome is seen as positive for investors, who have been concerned about market volatility.

Most polls predict the BJP and allies will secure 350-400 seats, similar to the 2019 elections. Analysts expect a 3-5 per cent market return on Monday if the majority size holds.

The NSE Nifty 50 Index could hit a new high if results align with exit polls on June 4, prompting foreign investors to cover short positions swiftly, according to the report.

The bond market is also expected to benefit from the election outcome, with potential upgrades in credit ratings and inclusion in emerging market bond indexes.