The BSE Sensex and Nifty rallied to record highs, breaching the psychologically important 25,000 mark, while the rupee strengthened to near a 10-month high against the dollar, as early vote counts in the general elections showed the opposition Bharatiya Janata Party and its allies leading.
The BSE Sensex touched a life high of 25,033.36 in trade while the Nifty hit a new record high of 7,459.40.
The partially convertible rupee was trading at 58.80 per dollar by 9:39am after hitting as much as 58.71. The local unit closed at 59.29/30 on Thursday.
The rupee also went past the 58 to a dollar mark buoyed by a sharp inflow of dollars backed by heavy buying by foreign funds.
With billions of dollars at stake the outcome of the high-octane elections are critical to decide on investment decisions.
Foreign and domestic investors believe that a stable government post-election and a continued push to resolving execution bottlenecks remain key to reviving capital expenditure.
There are heightened expectations that a stable, and decisive government, at the Centre will push projects and carry out much-needed reforms to help the economy claw out of a decade low crisis
Much is riding in these elections and a comfortable BJP-led NDA victory, many brokerage houses believe, will be good the economy.
The RBI and SEBI has formed a special committee to jointly monitor risk management systems through stress tests to address potential liquidity and other volatility-induced crises in currency, equity and bond markets on the poll counting day.
Last time, in 2009, trading had to be halted after markets hit the day’s upper circuit celebrating the UPA’s return to power with a greater mandate.
In 2004, markets had plunged sharply after the NDA unexpectedly lost power and the UPA formed the government with support from Left parties, which investors had then believed could delay reforms initiatives
Exit polls had suggested that the BJP-led NDA was ahead in the race and the Sensex had cantered past 24,000 market.
- See more at: http://www.hindustantimes.com/business-news/sensex-stocks-nifty-bse-nse-share-markets-trade-elections/article1-1219721.aspx#sthash.6hWshy72.dpuf
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