![\"Markets](\"https:\/\/c.ndtvimg.com\/2023-08\/l8lra8j_bse-generic-share-market-generic-sensex-generic-pti_625x300_21_August_23.jpg\"\/ "\\"Markets")
<\/div>\nExit polls in India have a patchy track record but will nevertheless boost market sentiment<\/p>\n<\/div>\n
Bengaluru: <\/b><\/p>\n
Indian shares are set to open higher on Monday with analysts expecting gains in infrastructure, capital goods and manufacturing stocks, after exit polls over the weekend projected a third term for Prime Minister Narendra Modi’s government.<\/p>\n
The Gift Nifty was trading at 23,353 points as of 7:05 a.m. IST, indicating that the Nifty 50 will open higher than its Friday’s close of 22,530.70.<\/p>\n
The Nifty 50 and S&P BSE Sensex dropped about 2% each last week ahead of the election result, which is due on June 4.<\/p>\n
Exit polls released on Saturday projected the Bharatiya Janata Party-led National Democratic Alliance will likely get a two-thirds majority in the 543-member lower house.<\/p>\n
The polls followed the end of voting in India’s six-week-long general election where campaigning turned divisive, and focused on religion and caste.<\/p>\n
Exit polls in India have a patchy track record but will nevertheless boost market sentiment, analysts said.<\/p>\n
“The exit poll numbers are very strong for the incumbent government,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.<\/p>\n
“Markets may not have priced in such strong numbers and we could see some reflection of that in today’s trading session,” added Mr Solanki.<\/p>\n
Foreign investors, who sold a net amount of $3 billion of Indian stocks in May, could also step up purchases, they said.<\/p>\n
These investors net bought shares worth 16.13 billion rupees (about $193 million) on Friday, while domestic institutional investors purchased 21.14 billion rupees in stocks.<\/p>\n
“Short covering by foreign investors is very likely, they are net short on Indian equities. Till they are net long, they will continue buying and that can spur a rally,” said Neeraj Dewan, director at Quantum Securities.<\/p>\n
An incoming government will likely focus on manufacturing, capex and infrastructure creation, Motilal Oswal said in a note over the weekend.<\/p>\n
Data released after market hours on Friday, which showed the economy grew a better-than-expected 7.8% in the January-March quarter, could also aid sentiment, said Solanki.<\/p>\n
($1 = 83.4240 Indian rupees)<\/p>\n
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n<\/div>\n