Indian Shares, Rupee Higher; Exit Polls Suggest Strong BJP Performance in State Elections

Indian shares and the rupee were sharply higher early Thursday, as exit polls predicted a strong performance for the main opposition Bhartiya Janata Party in state elections held over the past few weeks.

The final results for state elections are due on Sunday. A strong poll performance by the key opposition party would boost their chances of victory in the national elections, which are expected to be held by May 2014, dealers said. Most investors and analysts perceive the opposition BJP as being more business friendly.

Also, some have been unhappy with the performance of the ruling Congress-led United Progressive Alliance. Analysts and executives say the Congress party has not done as much as it could have to build the country's infrastructure or streamline its economy during its near 10 years in power.

The Bombay Stock Exchange's S&P BSE Sensex index was 1.7% higher at 21060.48 points at 0422 GMT. The 30-stock index had gained as much as 2.2% in opening trade--touching its highest level since Nov. 3.

The National Stock Exchange's 50-share Nifty index was up 1.8% at 6273.95 points.

The rupee was trading at a five-week high against the U.S. dollar. A dollar was last buying 61.65 rupees as compared to 62.05 Wednesday's spot market close.

"A likely clear victory by the opposition party ensures political stability and bodes well for markets. Risk appetite has picked up and the indices could test record high levels soon," said Nilesh Karani, vice president for research at Mumbai-based Magnum Broking Ltd. He expects the Sensex to face strong resistance at 21200 for the day.

All 13 of the Bombay Stock Exchange's sector indexes were trading higher. The bank sector index was the top gainer, up 4.1%.

ICICI Bank--the biggest non-state lender--was up 6.1% at 1,130 rupees, while peer HDFC Bank gained 4.3% to 685.45 rupees.

Among other key index gainers, top construction company Larsen and Toubro was 3.4% higher at 1,075.35 rupees and mortgage lender Housing Development Finance was up 2.5% at 833.45 rupees.

More: http://online.wsj.com/article/DN-CO-20131205-000007.html?dsk=y

Exit polls show 4-0 sweep for BJP, battlelines drawn in Parliament

An aggressive BJP is expected to arrive all guns blazing in Parliament today, charged up at the possibility of routing the Congress in Assembly elections in four major states, being seen as a semi-final before general elections due in a few months. (Winter session of Parliament: Track live updates)

"If the Congress were to lose, which seems likely, you'll have a lame-duck government for the next few months. The government had already lost its legitimacy, it will lose political relevance also," said the BJP's Arun Jaitley, Leader of Opposition in the Rajya Sabha. (Watch)

Polling was held in Delhi yesterday and votes for four states where elections were held in the last month will be counted on Sunday. The "exit poll of polls", an average of exit polls conducted by different agencies, shows that the BJP looks set to register convincing wins in Rajasthan, Madhya Pradesh and Chhattisgarh and has a clear edge in Delhi, where the Aam Aadmi Party makes an extra-ordinary debut. (Read)

Already, the BJP's prime ministerial candidate and Gujarat Chief Minister Narendra Modi has written to the Prime Minister accusing the government of pushing a Communal Violence Bill "that is ill conceived and poorly drafted." He has said that the bill is an attempt to "encroach on the authority of state governments." (Read)

The Communal Violence Bill is among a set of key legislations that the government has planned for the 12-day winter session of Parliament beginning today. The BJP has questioned the timing, accusing the government of trying to consolidate minority votes with an eye on general elections.

"The session is short and it is obligatory for all parties to get all possible legislations and pending business done," Prime Minister Manmohan Singh said today.

For the Congress-led UPA government, this is one of the last chances to prepare ground for the 2014 elections. On the BJP's demand that a bill on a separate Telangana state be "brought without ifs and changes," minister of state for parliamentary affairs Rajiv Shukla said, "We will definitely pass the Telangana bill."

The government also wants to push through the women's reservation bill in the Lok Sabha, which ally Samajwadi Party opposes and the Lokpal Bill.

More: http://www.ndtv.com/article/india/exit-polls-show-4-0-sweep-for-bjp-battlelines-drawn-in-parliament-454669