Indian shares cheer Prime Minister Modi's thumping victory


By Arnab Paul

May 24 (Reuters) - Indian shares jumped on Friday, as the euphoria surrounding Prime Minister Narendra Modi's landslide victory in the general election drove the bull run, with financials leading gains.

Modi's Bharatiya Janata Party (BJP) was ahead in 303 out of the 542 seats in the lower house of the parliament, latest data from the election commission showed, in what would be a first back-to-back majority for a single party since 1984.

Markets shot to record levels last session but the NSE index .NSEI and the BSE index .BSESN ended around 0.7% lower on profit-booking towards the end Modi's victory was assured.

"Investors and traders must wait for correction to enter in the market as going forward Sensex and Nifty may need to consolidate at lower levels," said Abhijeet Bajpai, chief executive of Avighna Trades.

"Nifty and Sensex may correct about 5% in next few days. Investors must focus on quality Midcaps in Infra, financial and banking sectors in any correction in the markets."

The broader NSE index .NSEI was up 0.77% at 11,747 as of 0352 GMT, while the benchmark BSE index .BSESN was 0.79% higher at 39,116.78.

Index heavyweight HDFC Bank Ltd HDFC.NS and State Bank of India SBI.NS rose 1.6% each, taking the Nifty Bank index .NSEBANK 1.4% higher.

Oil marketing companies Indian Oil Corp Ltd IOC.NS, Bharat Petroleum Corp Ltd BPCL.NS and Hindustan Petroleum Corp Ltd HPCL.NS rose between 2.5% and 5%.

Bharti Infratel Ltd BHRI.NS was the top percentage loser on the NSE index, falling 1.3 percent.

(Reporting By Arnab Paul in Bengaluru; Editing by Rashmi Aich)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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