Sensex jumps over 1,000 points after exit polls project second term for Modi

Indian equities staged a robust rally in the early morning trade on Monday, a day after exit polls of the general elections projected BJP-led National Democratic Alliance (NDA) to win with a comfortable majority.

By 12:15 hrs, the S & P BSE Sensex galloped 1,032 points at 38,963 while the Nifty 50 was up 308 points to 11,715.

The polls predicted between 242 and 365 for the Prime Minister Narendra Modi-led NDA and between 77 and 164 for the opposition Congress-led United Progressive Alliance (UPA).

To rule, a party needs to win 272 seats. In the 2014 election, Modi's alliance won 336 seats.

According to India Today Axis exit poll, the NDA is projected to win anything between 339 to 365 seats in the 545-member Lok Sabha with the Congress party-led opposition alliance at a distant 77 to 108.

Exit polls have a long history of going wrong in India. Still, they are generally considered more accurate than opinion polls conducted before actual voting.

A second term for Modi will mean endorsement of his policies on various fronts, especially on national security after tensions with Pakistan escalated earlier this year, rural reflation, infrastructure spending and streamlining of goods and services tax (GST).

However, investors are expected to remain cautious ahead of May 23, the day on which the outcome of the general elections will be declared officially,

The euphoria in Indian stocks was despite weak global cues. Asian equities were mixed as investors awaited the next chapter in US-China trade dispute.

Stock markets in Japan, China and Hong Kong were in the negative zone on Monday afternoon.