Indian shares recovery extends to second day with new govt awaited

BENGALURU: Indian shares ended higher for the second straight day on Thursday as investors moved past shock election results and awaited the formation of a coalition government.

The NSE Nifty 50 index ended 0.89% higher at 22,821.40 points and the S&P BSE Sensex rose 0.93% to 75,074.51, adding to their gains of more than 3% on Wednesday.

The more domestically focussed mid-cap and small-cap indexes added 2.24% and 3.29%, respectively.

The Bharatiya Janata Party-led National Democratic Alliance (NDA) named Prime Minister Narendra Modi as the leader of a new coalition government, after it regained power with a surprisingly slim majority.

“Some clarity has come with the formation of a coalition government but further concerns would be about allotment of portfolios and the new agenda of the government,” said Anita Gandhi, founder and head of institution at Arihant Capital Markets.