Stock markets close higher as Modi prepares for second term

Equity benchmark indices extended gains in the afternoon session on Thursday as investors hoped for new policies to stimulate economic growth in Prime Minister Narendra Modi's second term.

The BSE S & P Sensex closed 330 points higher at 39,832 while the Nifty 50 climbed 85 points up from its previous close at 11,946.

At the National Stock Exchange, most sectoral indices were in the green except for auto, FMCG, metal and pharma. Nifty financial service was up over one per cent.

Equities have been on a high since Modi won a massive mandate in the recent general elections. Industry bodies like CII and FICCI believe he will launch structural reforms in key sectors to revive economy, which ranks among the fastest growing globally.

Among the gainers on Thursday was Bharti Airtel which surged over 2 per cent after completing amalgamation of Bharti Digital Networks (earlier known as Tikona Digital Networks).

Power utility major NTPC, Bharat Petroleum Corporation, Yes Bank and Bajaj Finance also showed marginal gains.

However, Eicher Motors, Sun Pharma, Zee Entertainment, Mahindra & Mahindra and ONGC traded with losses.

Meanwhile, Asian stocks were mixed following Wall Street losses as exchanges between the United States and China hinted at a prolonged trade war.

Investors remained concerned over the impact on global economic growth as a protracted conflict unfolds between the world's two largest economies.

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