(MENAFN- AFP) India's main stock index surged more than six percent Friday to a record above the key 25,000-point level, while the rupee hit an 11-month high, as right-wing opposition leader Narendra Modi headed for a landslide election victory.
The Bombay Stock Exchange index, known as the Sensex, soared 6.15 percent to 25,375.63 as results showed pro-business Modi and his Hindu nationalist Bharatiya Janata Party (BJP) expected to score a huge win after a marathon poll.
The Sensex later trimmed its gains to trade up 2.06 percent at 24,397.05 points in the afternoon.
"Markets are following indications the BJP and its allies will have a thumping victory," Harendra Kumar, head of brokerage Elara Capital, said. "This is crucial for their ability to push key (economic) reforms."
Modi has ridden a wave of voter support with his message of jobs, development and revival of an economy that is growing a decade-low levels.
The party ousted the left-leaning Congress party which has ruled India for a decade and dominated the country's politics for most of its post-independence history.
The influential Federation of Indian Chambers of Commerce and Industry (FICCI) called Modi's "decisive mandate" a "positive for India".
"It is amply clear the country, especially the youth, wants development and good governance," said FICCI president Sidharth Birla, adding he hoped Modi's win would restore confidence in India.
Shares in infrastructure and energy companies, particularly of those whose owners are seen as close to the BJP, surged.
Adani Enterprises, controlled by stalwart BJP supporter Gautam Adani, rose as much as 17 percent to 585.00 rupees, while Reliance Industries, which is owned by India's richest man, Mukesh Ambani climbed 8.50 percent to 1,142.50 rupees.
Banks were also among top gainers, with Canara Bank and Andhra Bank both gaining 24 percent.
The rupee surged 1.14 percent to 58.62 against the dollar, building on gains in recent weeks that have been fuelled by expectations Modi would win the gruelling six-week election and introduce reforms to turn around the economy.
The rupee has now risen 17 percent since sinking to a record low of 68.85 in August when investors were worried about a fiscal deficit crisis and waning foreign investor confidence as the government struggled to boost growth in the face of global economic turmoil.
Stock markets have risen five percent in the past week alone as heady optimism has returned despite low investment and weak growth, stubbornly high consumer inflation and widespread corruption.
The economy grew 4.9 percent in the financial year to March, half its pace during India's boom years.
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