May 24, 2019 / 4:07 AM / 8 months ago

Indian shares cheer Prime Minister Modi's thumping victory

* NSE index rises 0.77%, BSE index 0.79% higher

* Oil marketers gain between 2.5% and 5%

* NSE, BSE may correct ~5% in next few days - analyst

By Arnab Paul

May 24 (Reuters) - Indian shares jumped on Friday, as the euphoria surrounding Prime Minister Narendra Modi’s landslide victory in the general election drove the bull run, with financials leading gains.

Modi’s Bharatiya Janata Party (BJP) was ahead in 303 out of the 542 seats in the lower house of the parliament, latest data from the election commission showed, in what would be a first back-to-back majority for a single party since 1984.

Markets shot to record levels last session but the NSE index and the BSE index ended around 0.7% lower on profit-booking towards the end Modi’s victory was assured.

“Investors and traders must wait for correction to enter in the market as going forward Sensex and Nifty may need to consolidate at lower levels,” said Abhijeet Bajpai, chief executive of Avighna Trades.

“Nifty and Sensex may correct about 5% in next few days. Investors must focus on quality Midcaps in Infra, financial and banking sectors in any correction in the markets.”

The broader NSE index was up 0.77% at 11,747 as of 0352 GMT, while the benchmark BSE index was 0.79% higher at 39,116.78.

Index heavyweight HDFC Bank Ltd and State Bank of India rose 1.6% each, taking the Nifty Bank index 1.4% higher.

Oil marketing companies Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd rose between 2.5% and 5%.

Bharti Infratel Ltd was the top percentage loser on the NSE index, falling 1.3 percent. (Reporting By Arnab Paul in Bengaluru; Editing by Rashmi Aich)

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