Riding on Modi wave: Nifty hits new high, rupee rallies

Sensex gains 1.71%, FIIs pump in Rs 4,100 crore; Rupee at highest level since November 6, 2015

The Narendra Modi-led Bharatiya Janata Party’s (BJP) strong showing in Uttar Pradesh (UP) elections propelled the benchmark Nifty to a record high and took the rupee to its highest level in 16 months. 

The resounding victory in the state elections — seen as a referendum on Modi’s popularity and radical decision like demonetisation — raised hopes of accelerated reforms and economic growth, boosting investor sentiment.

The 50-share Nifty index closed 9,087, up 152.45 points or 1.71 per cent — breaching the previous all-time high touched on March 3, 2015. The Sensex, an index of 30 blue-chip companies, rallied 496.4 points,