Indian shares gain as ruling party set for victory in key state elections

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India. REUTERS

Indian stocks gained on Monday after final voting trends showed victory of Prime Minister Narendra Modi's Bharatiya Janata Party in Gujarat and Himachal Pradesh state elections.

BJP has won more than 100 seats of the 182 assembly seats in Modi's home state Gujarat, projections by India Today, CNN News18 and TimesNow said. A party needs 92 seats to rule. Official results are yet to be declared by the Election Commission.

The S&P BSE Sensex advanced 0.41 percent at 33,601 while the broader NSE Nifty gained 0.54 percent to 10,388.

Among the top Sensex gainers, Mahindra and Mahindra rose 2.7 percent, State Bnak of India gained 2.3 percent, ICICI Bank advanced 1.7 percent while Sun Pharma was up 2 percent.

Steel Strips Wheels gained 0.7 percent after winning orders for caravan wheels in Europe.

Shares of Kishore Biyani-led Future Supply Chain Solutions listed at Rs 676, up 1.8 percent from its issue price of Rs 664 per share.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.

Asian shares edged up on Monday, with sentiment boosted by expectations U.S. lawmakers will pass a long-awaited tax bill.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent.