Mumbai: Indian shares shunned the weakness in
their regional peers and climbed more than 2% on Thursday morning, while
rupee strengthened against dollar to trade at 61 levels after exit
polls indicated the main opposition Bhartiya Janata Party (BJP) was set
to win four of five state elections to give it momentum ahead of
national voting next year.
At 10.50am, the 30-share benchmark BSE Sensex was trading 1.78%, or
369.54 points, higher at 21,078.25, while the National Stock Exchange’s
(NSE’s) broader 50-share Nifty was trading up 1.89%, or 116.20 points,
at 6,277.15. All stocks on the Sensex and Nifty were trading in green.
Earlier in the day, the Sensex had risen as much as
2.21%, or 456.89 points, to 21,165.60, while the Nifty had gained as
much as 2.27%, or 139.60 points, to 6,300.55.
Taking cues from the strong stock market movement, the
Indian rupee also opened stronger at 61.755 per dollar compared with
Wednesday’s close of 62.055.
If exit polls are proven correct, the outcome would point
to a critical trend less than six months before the general election.
Late on Wednesday, several exit polls projected that the BJP would score
an outright win in Rajasthan and Madhya Pradesh and hold the edge in a
close finish in Delhi and Chhattisgarh.
Significantly, the exit polls also project a spectacular
debut for the Aam Aadmi Party (AAP) in Delhi, where the election was
held on Wednesday.
“The market seems to have factored the positive results,
and if there are bigger surprises in store like the BJP winning more
seats than expected in Delhi, market could see a major boost next week,”
said Deven Choksey, chief executive officer and managing director, KR
Choksey Shares and Securities Pvt. Ltd.
He added that these election results could give a prelude as to what 2014 general elections could end up like.
“The market wants the growth path to return. (Narendra)
Modi has been very proactive about industrial growth and progress in
Gujarat, and investors are hoping they see him at the Centre,” he said
pointing to the rise in banking and capital goods indices.
The BSE Bankex led the gains for the Sensex with a 4.1% rise, followed by the Capital Goods index which gained 2.8%.
Leading private lenders ICICI bank Ltd and HDFC Bank Ltd were up 6% and 4.1%, respectively. Bharat Heavy Electricals Ltd (BHEL) rose 3.2%.
The yield on India’s 10-year benchmark bond was trading at 8.765%, compared with its Tuesday’s close of 8.779%.
The dollar index, which measures the US currency’s
strength against major currencies, was trading at 80.620, unchanged from
its previous close of 80.619.
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