India’s benchmark stock index advanced to a record high Monday as investors cheered the results of weekend elections that could lead to economic reforms.
The Mumbai Sensex closed up 1.6% after gaining as much as 2.3% earlier in the day. Market enthusiasm also drove the Indian rupee to its highest level against the dollar in more than four months.
Investors are optimistic after a strong performance from the main opposition Bharatiya Janata Party in state assembly elections. Much of the BJP’s success came at the expense of the Congress Party, which suffered one of its worst defeats in recent history.
The results of the election, which polled one in six Indians, should put BJP in the driver’s seat to lead a coalition government after national polls are conducted next year. BJP is one of the most business-friendly political parties in India.
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