Indian stocks rallied, with the benchmark index rising to a record, on speculation election results next week may show a victory by the main opposition party. Option prices climbed to the highest level since 2009.
ICICI Bank Ltd. (ICICIBC) advanced to six-year high, sending an index of lenders to a record. Maruti Suzuki India Ltd. rose the most in seven weeks. India VIX, which gauges the cost of options on the CNX Nifty Index, surged to the highest level since August 2009 as traders bet exit polls early next week and results May 16 will heighten market swings.
The S&P BSE Sensex (SENSEX) rallied 2.9 percent to an all-time high of 22,994.23, according to preliminary closing prices. The gauge increased for a third month in April as investors bet a win by Bharatiya Janata Party’s Narendra Modi will allow him to boost economic growth from near the slowest pace in a decade. Foreigners bought a net $ 24.7 million of local shares on May 7, a 12th day of purchases, data compiled by Bloomberg show.
The Sensex has climbed 17 percent since Sept. 13 when the BJP named Modi as its prime minister candidate. The rally may extend if the BJP and its partners win more than 266 seats, approaching the 272 required for a majority, according to a Bloomberg survey of 19 brokers and investment advisory firms.
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