Indian stock-index futures gained after the benchmark S&P BSE Sensex (SENSEX) index closed above the 25,000 level for the first time.

SGX CNX Nifty Index futures for June delivery increased 0.5 percent to 7,528 at 9:40 a.m. in Singapore. The underlying CNX Nifty Index rose 1 percent to a record 7,474.10 yesterday. The S&P BSE Sensex advanced 0.9 percent to 25,019.51, extending this week’s gain to 3.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 1.3 percent.

The Sensex has surged 27 percent since September amid optimism the Bharatiya Janata Party alliance led by Narendra Modi would spur growth in Asia’s third-largest economy, culminating in a victory at polls last month that handed Modi the country’s strongest electoral mandate in 30 years. The new government announces its first budget in July.

“I expect the markets to touch new heights,” Motilal Oswal, chairman of Motilal Oswal Financial Services Ltd., wrote in an e-mail. “We may see the Sensex at 30,000 before the budget. The next few years will be very bullish for equity investors.”

The Sensex is valued at 15.4 times projected 12-month earnings, the most expensive since April 2011. The MSCI Emerging Markets Index is trading at a multiple of 10.9.

The BJP and its allies won about 61 percent of seats in parliament as voters punished the Congress party-led coalition for growth that’s slowed to less than 5 percent for seven of the last eight quarters, graft and Asia’s second-fastest inflation.

India’s consumer-price gains accelerated to a three-month high of 8.59 percent in April, the fastest pace among 18 Asian economies tracked by Bloomberg. Risks to the central-bank forecast of 8 percent retail inflation by January 2015 “remain broadly balanced,” the Reserve Bank of India said on June 3.

Overseas investors bought a net $ 111 million of Indian shares on June 3, taking this year’s inflows to $ 8.2 billion, the most among eight Asian markets tracked by Bloomberg.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

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