FX.co ★ Sensex, Nifty Rally Over 3% As NDA Looks To Form Govt

Indian markets rebounded sharply on Wednesday, recovering from significant losses in the previous session that were driven by concerns over Prime Minister Modi potentially facing obstacles in implementing reforms and infrastructure spending due to a smaller majority.

The benchmark S&P BSE Sensex surged by 2,303.19 points, or 3.20%, to reach 74,382.24, as a third term for Prime Minister Narendra Modi appeared increasingly certain with the National Democratic Alliance (NDA) nearing the 300-seat mark.

The broader NSE Nifty index similarly saw a substantial gain, climbing 735.85 points, or 3.36%, to settle at 22,620.35, amid anticipation of the new government and cabinet formation.

Leading the gains were stocks such as Mahindra & Mahindra, Tata Steel, Hindalco, IndusInd Bank, and Adani Ports, all of which increased by 6-7%.

In a significant development, Modi has resigned along with his Council of Ministers, clearing the way for the establishment of the new NDA government.

The swearing-in ceremony for Prime Minister Modi is expected to take place on June 8, officially commencing his new term.

Today, NDA partners are convening at Prime Minister Modi's residence to discuss the formation of the new government with key leaders.