Equity futures jump as markets cheer likely third term for PM Modi

India's rupee was firm and stock futures jumped early on Monday as exit polls pointed to a third term and sizable mandate for Prime Minister Narendra Modi, whom investors hope will spend on infrastructure and manufacturing to keep economic growth going.

Weekend exit polls projected the alliance led by Modi's Bharatiya Janata Party (BJP) to increase its 303 seats in the 543-member lower house and likely get a two-thirds majority - enough to initiate amendments to the constitution.

A win had been widely expected. But, if confirmed in official results due on Tuesday, the margin is larger than analyst forecasts and seen as a positive for equity markets that have scaled record highs on the back of economic growth.

NIFTY 50 index futures were up about 2.6 per cent in early trade, according to NSE International Exchange data, and, at 23,343.5 indicated the index could open at record levels.

Early trade in the non-deliverable forwards (NDF) market pointed to a firm rupee. In the spot NDF market the rupee traded at 83.09 to the dollar, against a close of 83.46 in the spot foreign exchange market on Friday.

"We had always felt that the economic progress made by most Indians over the last 10 years was sufficient to see Modi re-elected with ease," said Rob Brewis at UK-based Aubrey Capital Management.

"If this result is confirmed then I think it is a real vote of confidence and Modi can really press ahead now. So maybe that faster growth we need can be attained. The markets should like that."

India's exit polls have a patchy record, often getting the outcome wrong. The results of the general election among a billion eligible voters are to be announced on Tuesday.