Indian stock-index futures gained after benchmark indexes advanced to records as exit polls signaled an opposition victory in national elections.

SGX CNX Nifty Index futures for May delivery rose 0.3 percent to 7,158 at 10:05 a.m. in Singapore. The underlying CNX Nifty Index increased 1.4 percent to a record 7,108.75 yesterday. The S&P BSE Sensex (SENSEX) also added 1.4 percent to an all-time high. The Bank of New York Mellon India ADR Index of U.S.- traded shares fell 1.5 percent.

Indian stocks climbed yesterday and the rupee strengthened after exit polls showed the main opposition alliance led by Narendra Modi probably won the most seats in parliamentary elections. The Sensex has outperformed stock indexes in Brazil, Russia and China this year as investors bet a Modi-led government will revive an economy growing at near the weakest pace in a decade. Results will be announced on May 16.

“We are in a new trajectory with no immediate signs of correction,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., wrote in an e-mail yesterday.

The Sensex has risen 21 percent and the rupee strengthened 6.2 percent since Sept. 13, when the BJP named Modi as its candidate for prime minister. The rally may extend if the BJP and its allies secure more than 266 seats, according to a Bloomberg survey of 19 brokers and investment advisory firms published on May 9.

Foreign Inflows

Global investors have plowed $ 11.3 billion into Indian stocks and bonds this year. Inflows into equities may continue on expectations of a stable government, Goldman Sachs Group Inc. wrote in a report yesterday. JPMorgan Chase & Co. said it expects “market revelry” to continue as exit polls show a Modi-led alliance may be less reliant on the support of regional parties to form a government or pass legislation.

India’s economy grew 4.9 percent during the fiscal year ended in March, close to the previous year’s decade-low of 4.5 percent, the government estimates. Projects worth $ 230 billion are awaiting clearance as lawmaking stalled in Prime Minister Manmohan Singh’s coalition government, according to the Cabinet Committee on Investment.

Overseas investors bought a net $ 203 million of Indian shares on May 12, taking this year’s inflows to $ 6 billion, the most among eight Asian markets tracked by Bloomberg.

Tata Steel Ltd. (TATA), India’s biggest producer, may report today net income of 9.13 billion rupees ($ 153 million) for the quarter ended March 31, according to the median estimate of 23 analysts in a Bloomberg survey. That compares with a net loss of 65.3 billion rupees a year earlier.

The Sensex has climbed 13 percent this year and is valued at 14.8 times projected 12-month profits. The MSCI Emerging Markets Index is trading at 10.6 times.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at

To contact the editors responsible for this story: Michael Patterson at Matthew Oakley, Phani Varahabhotla