The rupee and bonds surged on Monday after exit polls predicted the Narendra Modi-led government returning to power for a second term. The Bharatiya Janata Party-led National Democratic Alliance is likely to win over 300 seats in India’s 543-seat lower house, according to many exit polls. The opposition, the Congress-led United Progressive Alliance, will win an estimated 132 seats, exit polls showed. However, it would also be contingent on overall global risk appetite amid current global market idiosyncrasies. Overall, we remain wary of renewed trade tension and CNH volatility and sticky Brent prices, global risk appetite swings, and still-fragile fiscal state, despite marginal improvement in external accounts.

Source: Mint May 20, 2019 17:15 UTC