Indian markets cheer Modi's likely return to power
Indian markets rallied on Monday after exit polls showed Prime Minister Narendra Modi was set to win a second term after a general election with an even bigger mandate than in 2014.
Exits polls, following the mammoth seven-phase election ended on Sunday, showed Modi’s National Democratic Alliance (NDA) was projected to win between 339 and 365 seats in the 545-member lower house of parliament when votes are counted on Thursday.
Markets had been expecting the NDA to win a second term but the margin of victory as suggested by the polls is a clear surprise and expected to keep sentiment buoyant in the near term.
The NSE share index was up 2.46% at 11,688.05 points as of 0558 GMT, while the benchmark BSE index was 2.57% higher at 38,906.76 points.
India’s NSE stock futures listed on the Singapore exchange , an indicator for the broader NSE index, was up 2.34% as of 0601, after rising as much as 2.76%.
“I expect another 2-3% rally in the market in the next 3-4 days based on the cue,” said Samrat Dasgupta, a fund manager at Esquire Capital Investment Advisors.
“But once the results are out on Thursday, even if it is as expected, I don’t see much upside to the market.”
Markets are likely to hold in a range ahead of the vote count on Thursday with a bullish bias. The Nifty which has seen strong resistance at 11,800 levels could look to break that and move towards 12,200, analysts said.
Rupee, bond gain
India’s bonds and rupee have both held in a tight range in recent weeks despite the positive underlying bias as investors stayed on the sidelines awaiting the election outcome.
Low inflation and foreign fund inflows have aided the rupee while the central bank’s efforts to ensure adequate liquidity in the banking system through forex swaps and open market bond purchases have helped bonds.
The partially convertible rupee was trading at 69.53/54 per dollar at 0602 GMT, after rising to 69.3550 earlier, making for a 1.2 percent gain on the day. The increase, if sustained, would be the highest since December.
Investors expect the rupee to hold in a 69-72 per dollar range in the medium term with global oil prices having the potential to push it lower.
The rupee had closed Friday at 70.22. Further gains in the rupee will also depend on flows into the stock markets.
The benchmark 10-year bond yield was trading at 7.30 percent, down 6 basis points on the day after briefly falling to a low of 7.28 percent.
Though investors are happy with the idea of continuity, they felt that a lot of the work that has been done by the government to generate economic growth has not yet been felt. They said the second five-year term would give Modi the opportunity to implement those reforms and deliver on growth.
“I would expect more over the next five years,” said David Cornell, Chief Investment Officer at Ocean Dial Asset Management.
“A lot has been done but a lot more needs to happen in terms of the judiciary, generating employment growth, public sector divestment, attracting foreign investment, improving the fiscal deficit. So there is an awful lot more that needs to be done.”
Comments (154) Closed
3.5 lakh-crore of wealth added (at the moment); 1000+ point jump in sensex. Modi hai toh mumkin hai.
Modi is not a leader but a brand in India.
That is the power of democracy. People of India know their priorities and cast their vote. Hope even in Pakistan we have a strong government and hope we have a similar or a better democracy than India.
Phir ek baar modi sarkar!!!!!
Well we can only congratulate Narendra Modi and People of India. We respect your decision and verdict. Hopefully this time both India and Pakistan should start communication towards peace.
PM IK was right when he said that after Indian Elections and formation of new govt he will take up Kashmir issue with MODI govt.
Slow and steady...
Sensex is at 39050 up up 1125 pts at 13.19 IST How is the josh ? HI Sir
Good indications for Indian economy.
Modified India will be a much better place in 5 years.
This is not final result This is only prediction Wait for 23 may when results will announce And i say that indian media is purchased by modi government That is the fact
Modi effect !
its good news for india and also for pakistan as imran khan said.
That's the real power of Modiji
People of India likes Modi ji. Congress is no where. Rahul Gandhi is rejected by the people of India.
Every Policy and scheme for the benifit of Nation. Here comes Modi back.
Great
Sensex is now gained more than 1200 points. Cheers for India Cheers for modi. Modi will be the true global leader in next 5 years that India remember for centuries for making India strong and prosperous. Jai bharat Jai modi.
Not so good news for Pakistan...
Modi win, thanks to Russia type collusion of the cyber group at the back.
The feeling of bliss and satisfaction.
Modi is going to win as expected, now what Imran is planning to do? any soft diplomacy with Modi will be of great help to revive the trade between two countries and reduce the deficit.
What a great mandate!!!! Rupee is appreciating against USD!!! Markets up significantly !!! Whole country is rejoicing after the Tyohar!!! Thank you Prime Minister Modi for your service to our great country.
Jai ho Modi.
Congrats to PM Modiji and BJP. I hope India will progress in all dimensions and everyone in society will get benefit of it regardless of caste and religion.
Markets have joined the people in cheering up at the happy news of Exit Polls
@Shahid Afridi, how naive
@Danish khan, you are spot on my friend.
@Danish khan: You know so much. Congrats.
@Danish khan, as Umar Abdullah said, every survey can not be wrong. Even if they are wrong, margin of victory predicted is large enough to accommodate 20% error.
Mr. Modi is a good leader without selfish interest. He is maligned by selfish people and blamed without anything wrong. He is bold and ability to take strong decisions. We hope, with the presence of Mr. IK in Pakistan, some fruitful solution can happen on all outstanding issues. During Gen Mushraff time, Mr. AB Vajpayee reached some consensus but couldn't fulfilled. Another political parties of India doesn't have leader with strong hold on their party and will power to resolve entangled issues.
Told ya!
@M. Saeed, Voting in India is done through EVM and there is no online mechanism to hack it.. This is for your information and records.
Phir ek baar Modi Sarkar. You made India and it's people proud.
@Danish khan, May or may not be but no party can buy Indian voters.
And market is up by 1500 points,,,woooohhhh
What other options do the Indian markets have got at this point in time and history to stay afloat, go with the current tide, save their skins, get counted and do what others are doing to blindly follow, sheeply emulate and inadvertently immitate the current trends and patterns?
@M. Saeed, same like imran khan govt won
I personally feel if Modi comes in power with thumping majority, Both countries should sit and amicably solve all the issues, leaving all the ego's on one side. It is for the betterment of both countries...lets Pakistan does its progress and we should have a strong and amicable neighbour in our vicinity.
Both country men and politicians should show some maturity fighting and jumping like kids that time is gone.
@M. Saeed, You can doubt the EVM how can you doubt the SENSEX Jump?
@M. Saeed, "Modi win, thanks to Russia type collusion of the cyber group at the back.:
You are very kind on Modi. Actually he won because the election process is totally compromised in India.
@Dr. Salaria, Aamir Ahmad, Correct, India under Modi has no option but greatness.
Just imagine the markets has jumped so much with exit polls results. How far it will jump when real results will come???
Breaking News: RSS is starting it's first Madrasa in Uttarakhand. My prayers have been answered. BJP will soon have a Muslim vote bank too shattering Congress' secular propaganda nonsense.
@Dr. Salaria, Aamir Ahmad, clearly you are not a fan of democracy.
Well done Modi. Keep it up!!
@Dr. Salaria, Aamir Ahmad, do you even yourself know what you are writing?
@Danish khan, you mean that after 70 years of plundering India Congress does not have money to buy the media ? media is smart and neutral in India
1400 points jump, 3.75% in Sensex, highest in 10 years. Markets welcoming exit poll victory for Modi with open arms.
Now that's called a true leader.
Dr Salaria, Aamir Ahmad is very jealous, calm down sir.
Modi and his cronies fixed the elections in India.
Good choice
Modi has purchased media managing EC and destroyed every institutions of democracy
@Shahid Afridi, - it's all about economics. Nothing personal.
Now, it is a beginn of new century for India.
Modi is the leader with the will and courage to settle regional issues. Welcome back
Modi is going to make India shine again.
Borders will be more secure and will not be redrawn.
A country's stock market is a great and unbiased indicator on how the country's economy is viewed by its own people as well as internationally. Based on that indicator, India's economy is destined for great heights.
Dont support BJPs hinduvta agenda but Modi is the best choice, this term will see big movement towards progress. India’s strength is being secular, western neighbour should be an example of what not to do!
India is unstoppable
@Dr. Salaria, Aamir Ahmad, Forget market. Appreciate what Indian electorate has done. 900 million very diverse voters can not be bought.
Congress has only itself to blame it should have got rid of Rahul Gandhi and replace him with Priyanka Gandhi and went in the election with her as leader only she could have defeated modi
Good news will follow bright future for Indian.
@Danish khan, Why not Indian public also?
The people if India have voted and democracy has won. Congratulations to the winners.
@M. Saeed, Rules are same for all parties. If BJP has taken help of cyber no body stopped opposition. A lame argument.
@kkl, Market is not up because of Modi. It has gone up because of the potential political stability.
@M. Saeed, Nothing to do with Russia type collusion. It was PM IK's collusion.
@Danish khan, If there is no opposition where's the fun? We need people like you.
Total wealth added to stock market 5.33 lakh crore indian rupees which is to equal
76 billion us dollars.
All this wealth creation in single day.
It's more than cost of cpec.
Indians fullfilling Pakistan's PM wish.
Muslim vote bank has now become irrelevant in Indian politics!
Modi can bring peace in the region and develop good relations with Pakistan. Imran Khan is already hopeful and looking forward to see Modi.
Hopefully this time Modi will act and govern rationally and sensibly.
Good to see Modi who has become a symbol of India throughout the world.
I am modiji fan from India. I want him to return - and lead India to newer horizons. The only blemish is the demonetization (implementation). But hopefully he has learned from it and can bring/implement better changes this term.
Any incorruptible political leader in any of our South Indian democracies can really become a cult hero like Modi. Otherwise all our leaders are so corrupt that politics is synonymous with corruption including in India. This person is an exception and total departure to this rule. No wonder some see him as a statesman already.
@Jamal Ahmed, Rest assured that Modi has always acted and govern rationally and sensibly. It depends on your Umpire!
@M. Saeed, Keep such conspiracy theories for your politics.
@Danish khan, And who are you purchased by?
@Babu, waste of time
@Shahid Afridi, Ameen
@Nitin, You are right. Modi never was a leader as he doesn’t have such capabilities and yes, he is carrying Saffron brand.
IK should learn from Modi.
@Dr. Salaria, Aamir Ahmad, comes Dr. markets are not controlled even in Pakistan.
Investors richer by 5 lakh crore Rupees in one day. That's called confidence in the economy and political stability.
@Shahid Afridi, love your wish and we also want peaceful relationship with Pakistan.
One of the most honest and strong leader of our country will make India strong prosperous and develop.
India needs a strong government under the leadership of Modi.
@Shahid Afridi, Support your sentiments, brother in your hope for the better!
Congress and allies Played with fear factor of minorities, but failed miserably. Many of my Muslim friends openly admitted, they voted for BJP. Their mothers and sisters voted for BJP.The top two diplomats in UN who works tirelessly for indian intetests are muslims.Faith is personal. Patriotism is common.
@Shahid Afridi, Pakistan and India should follow their distinct path. Don't wait for india. Move on. Find your own partners.
He is one of the Greatest leader India in recent years.
@Danish khan, -- Tell us if you have been purchased by the opponents of Modi (both in and outside India)?
@Dr. Salaria, Aamir Ahmad, even do you understand what u write?
@Danish khan, this is exit poll why will they make a fool of themselves willingly for 3 days
Very bad for pakistan...modi is determined to destroy pakistan....
1/8th of humanity has spoken. The largest democracy on planet earth has a lot to be proud of for conducting a free and fair election at this scale.
5trillion economy by 2023
Wait till 21st May 2019. The news only exit pole results and are highly arbitrary. He may get majority. But certainly, he may not get absolute majority this time. He may need support from other parties this time to form government.
The news item talks only about Modi NDA getting 365 seats. It will not matter even if it gets 260-270, Modi will come to power anyway. But the news team will rejoice if Modi gets 260 as if he lost the election.
Celebration by the largest democracy in the world!
Har Har Modi Ghar Ghar Modi
@Jaleel, - Amen brother. Yes, people of India can NEVER be separated. They stand united, always!
@Anonymouseee, "Modi and his cronies fixed the elections in India" Sure buddy. Anything for your wildest fantasy. W Indians proudly fixed him as our PM, perhaps for three more terms.
Unfortunately we are going to see the difference between the neighbors grow as one gets richer and the other gets poorer . Some of this is just dynamics of the times we live in but this also is problematic if the two don’t get along giving one far greater dominant position to a point that can threaten the other’s existence. Until the last 70 years the existential threat card was prematurely played now the next 20 years this will become a reality and the cards don’t have any value left . No alliances with another major power on whose debt trap we are already caught in would save the day . Reconciliation of differences with the order of the day is best without delay .
@Shahid Afridi, "Hopefully this time both India and Pakistan should start communication towards peace" Communication is not the answer. We know the evil that plagues our subcontinent. For the sake of all of us civilians, Modi will weed it out by the roots, hook or crook, mark my words. When he makes the west (mainly USA and Canada) seize private assets, stop all education and sustenance, it will be endgame. And that time has come.
The market was down for last one year, when Modi was PM, so Modi becoming PM again is no justification for market to go up. These are hype, traders act, manipulation etc. The economy still has to recover. The market will fall soon, and lot of people who buy based on sentiments and beliefs will suffer as usual and then blame stock market as a bad thing. Modi or without Modi, only way to buy stock is after knowing about the company and understanding its future, and not on hype created by media.
@Anonymouseee, Such things always happen here and never there!
Dynasty politics are going out from the sub-continent and soon from the world.
@Danish khan, if this gets converted into result, will you start supporting Modi?
I wish same luck as Modi to Imran Khan. For him going is not easy.
@Jaleel, so far the most sensible comment I have seen !!
@Khalid "The market was down for last one year, when Modi was PM "
Not true. Over the last one year, the Indian stock market has been one of the best performing markets in the world with a Return of 15% and in 2018, for the first time India overtook China as the most preferred investment destination for foreign funds & institutions. 2019 will be even better for Indian markets.
Modi Israel combo won, bring it on
Modi appears to be winning because the opposite alternatives are really bad - having said that the margin appears to be suspect ...either the media was hyping the opposition support - or there is a trend of the silent voter which the pollsters seem to be missing . We will know for sure on 23rd
I hope it leads to dialogue between India and Pakistan and leads to better relations.
India should make sure BJP stays in power for next 15 years at least.
@Babu, keep dreaming.
@Dr. Salaria, Aamir Ahmad, copy and paste again.hard for common people to understand your grievances.
@Dr. Salaria, Aamir Ahmad, Philosophy? Explain
it better?
@Khalid,
Yes, you are correct the market did fall last year but after SENSEX moving from 34000 to 39000 and NIFTY moving from 10500 to 11700. A pullback after a breakout is a normal activity in the stock market.
@Dr. Salaria, Aamir Ahmad, The current trend and pattern has us going as fastest growing major economy in the world with the highest rate of poverty reduction in our history. I guess sheepily emulating the current trend is not that bad.
@M. Saeed, Modi was portrayed as "Divider in Chief" in Time Magazine and the article was written by Son of a Pakistani Politician. So much for claims about collusion. If we put half that effort on our own country,we would have been a much prosperous nation.
can mr naqvi see this.
Sensex jumps 1422 points in a single trading session. Unheard of in its history. That's an indication of the business communities trust in the Modi government. India now expects that the work started during the last 5 years will show the desired results in the next 5 years and wipe out the corruption and sluggishness in the administration. Economically India's GDP is expected to cross US$3 trillion replacing UK and becoming the 4th largest economy worldwide.
@Shahid Afridi, Surely will. It is not helping either nation being at each other's throats especially Pakistan which has its own demons to fight. SARC should be like ASEAN where disputes are sorted out without economic damage to any party. Alas, South Asia is the weakest region despite the highest population which should have been our strongest resource.
@Danish khan, seems like sour grapes
@Shahid Hassan, very well said. Cutting rhetorical thinking and policies only ruin the national interest. Face the reality and change with situation is the only way to progress.
@Babu, we are not interested to talking but building more dams
@Mahmood, we are not interested
@Danish khan, People like you and Indian opposition saying everybody from Media , Voting Machines, Election commission , Judiciary , and people supporting Modi. Well Thats called winning election by popular support.
you may call him hardliner ,but in democracy you can always learn from others.Three times CM in Gujarat ,and second time land slide victory expected as PM.Some where people have benefited from his development model.
@Shahid Hassan, "Unfortunately we are going to see the difference between the neighbors grow as one gets richer and the other gets poorer . Some of this is just dynamics of the times we live in but this also is problematic if the two don’t get along giving one far greater dominant position to a point that can threaten the other’s existence. Until the last 70 years the existential threat card was prematurely played now the next 20 years this will become a reality and the cards don’t have any value left . No alliances with another major power on whose debt trap we are already caught in would save the day . Reconciliation of differences with the order of the day is best without delay ."
Good to know there are some sensible people left on the other side of the border.
@Khalid, - who are you? Chief economist?
@Danish khan, Really?? What they will gain by showing Exit Polls in Modi's favour after Elections and just 3 days before counting. ?? People should revisit their thinking process!!
While on one hand , media is hyping to put Rahul Gandhi in the front seat and for the top position in the country, on the other hand he has made least impact on people of the country. Now he has been in politics for 15 years, but he hardly gives an impression of a serious thinker and to be commanding any respect of the people. May be he has yet to learn the hard lessons of politics.
@Kam, ]Congress has only itself to blame it should have got rid of Rahul Gandhi and replace him with Priyanka Gandhi and went in the election with her as leader only she could have defeated modi The Gandhi Vadra's cannot defeat Modi in this lifetime...especially with their collective INTELLECTUAL CAPABILITIES...
@Dr. Salaria, Aamir Ahmad, Before lecturing others look at your own stock market which is in a free fall.
@Nitin, then, how a million plus EVMs disappeared before voting, only to return with machined-in votes?
@Mahmood,
No talk with small man in big office
The spectacular jump in Sensex. To sustain this level much more needs to be done. The data, results and economic figures do not match the euphora in Modi's victory.
@Jaleel, well said!
@A, One gets a leader, what he deserves!
There goes the neighborhood.
@M. Saeed, People know who they voted for. If million machines would have gone missing, polls would have cancelled.
Bad news for majority of Indians, and there are 1.3 billion of them!
And done it shall be.
Modi Once More.
Jai Hind!
@Ramanathan, absolutely, sir.
good news for hindus in india only.
@Dr. Salaria, Aamir Ahmad, You should be made finance minister of Pakistan or English Minister of Pakistan!!.
Pakistanis would like to see Modi in power only because his policies make the Muslims of India realize the importance of creation and existence of Pakistan !