Indian Stock Market Hits Record High Amid Celebrations of Modi’s Likely Return

The Indian stock market surged with a record high on Thursday as early trends showed a massive victory for Prime Minister Narendra Modi's National Democratic Alliance (NDA) in early vote counting in the world’s largest democracy.

New Delhi (Sputnik): The Bombay Stock Exchange (BSE) Sensex, in a first, crossed the 40,000-mark after climbing around 1,000 points, while NSE Nifty touched the 12,000-level in early trading.

READ MORE: Exit Polls Keep Netizens Busy Debating Indian PM's Likely Re-Election

Investor sentiment has been buoyant since exit polls predicted a stable government and comeback of the Narendra Modi-led government for a second-term. Th rupee and sovereign bonds have also strengthened in the early trading. The rupee strengthened to 69.40 against the US dollar which is its highest in the last three months.

#SENSEX Crosses 40,000 for the first time ever #SENSEX40k pic.twitter.com/HkE5i3MFEQ

— BSE India (@BSEIndia) May 23, 2019

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The market expects that in second term the government will take firm steps to privatise loss-making state funded units and tighten fiscal policy to give a push to economic growth.

READ MORE: Counting of Votes Begins to Decide Fate of India’s PM Modi

Earlier this week, the United Nations (UN) lowered its forecast for India's annual growth in 2019-20 to 7.1% from its earlier estimate of 7.5% but emphasised that "Strong domestic consumption and investment will continue to support growth, which is projected at 7% in 2019 and 7.1% in 2020".