Likely Modi win to boost Indian infrastructure, manufacturing stocks
Indian shares are set to open higher on Monday with analysts expecting gains in infrastructure, capital goods and manufacturing stocks, after exit polls over the weekend projected a third term for Prime Minister Narendra Modi's government.
The Gift Nifty was trading at 23,353 points as of 7:05 a.m. IST, indicating that the Nifty 50 will open higher than its Friday's close of 22,530.70.
The Nifty 50 and S&P BSE Sensex dropped about 2% each last week ahead of the election result, which is due on June 4.
Exit polls released on Saturday projected the Bharatiya Janata Party-led National Democratic Alliance will likely get a two-thirds majority in the 543-member lower house.
The polls followed the end of voting in India's six-week long general election where campaigning turned divisive, focused on religion and caste.
Exit polls in India have a patchy track record but will nevertheless boost market sentiment, analysts said.
«The exit poll numbers are very strong for the incumbent government,» said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.
«Markets may not have priced in such strong numbers and we could see some reflection of that in today's trading session,» added Solanki.
Foreign investors, who sold a net amount of $3 billion of Indian stocks in May, could also step up purchases, they said.
These investors net bought shares worth 16.13 billion rupees (about $193 million) on Friday, while domestic institutional investors purchased 21.14 billion
