Indian stock markets chalked up new record highs on Monday as experts predicted a resounding victory for incumbent Prime Minister Narendra Modi in national elections. India’s benchmark Sensex index, which tracks 30 large companies, and the broader Nifty 50 index each ended the day at their all-time closing highs, having gained more than 3%. The surge comes after India concluded its mammoth, weeks-long election this weekend.
The country is comfortably placed to expand at an annual rate of at least 6% in the coming few years, but analysts say it needs to achieve growth of 8% or more if it wants to become an economic superpower. Investors hope that if Modi wins a big majority in parliament, his government will unleash key land and labor reforms needed for the next phase of growth.