After early trends of leading numbers in over 300 seats, India's 10-year bond prices gained to hit a 13-month high on Thursday morning. The 10-year bond yields were seen at 7.201 percent, compared to the previous day's close of 7.26 percent. Bond prices and yields always move in opposite directions.
An BJP-led NDA win with a majority is seen as positive for the markets as it bodes well for policies and reforms continuity in the country. This has become especially important considering the not-so-favourable international factors like the US-China trade war and the sanctions on two major oil producing countries, making domestic factors the major driver to fuel the economy of the fastest growing economy in the world. A slowdown in the growth was already seen in the third quarter of 2018-19.
The rupee's stance will also be affected by these global factors and will stay within the 70-mark against the US dollar only if the Indian economy picks pace.
Following the exit polls, that predicted a clear win for the NDA government and reigning Prime Minister Modi, Indian stock market benchmarks have been rallying to new heights.
BSE's Sensex touched 40,000 while Nifty 50 crossed the 12,000-mark for the first time ever on Thursday after the Election Commission's counting trends showed that BJP's vote share was above the half-way mark in most states.