India’s benchmark index surged to a record high Friday after initial election results suggested a sweeping victory for Narendra Modi and the pro-business Bharatiya Janata Party.
Investors reacted to the news with marked enthusiasm, sending Mumbai’s Sensex index up by more than 5% after the opening bell. The rupee strengthened 1.3% and hit a new 10-month high against the dollar.
The prospect of a Modi-led government has helped boost India stocks by almost 18% since the start of the year. The rupee has responded too, clawing its way back from a dismal performance in 2013.
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