There could be more gains for Indian markets when they open for trading on Monday morning. Prime Minister Narendra Modi's NDA alliance is likely to win a clear majority in parliament after a mammoth general election that ended on Sunday, most exit polls showed, a far better showing than expected in recent weeks. Many market analysts predict an upmove based on the exit poll predictions over next few sessions, despite a weak global backdrop.

"The exit results are better than the expectations. Markets will move up by 2-3 % in next few days. I am quite optimistic at these levels. Investors should increase equity allocations," said Motilal Oswal, CMD of Motilal Oswal Financial Services.

The Indian rupee is also likely to cheer the exit poll results, say analysts. India’s stock, rupee and bond markets will likely gain on Monday after exit polls showed Modi is likely to return to power, according to Paresh Nayar, Mumbai-based head of currency and money markets at FirstRand Ltd.

Indian markets had seen strong gains on both Thursday and Friday, bucking the weak global trend. “The hope rally began on Thursday and with the exit poll results, undoubtedly the reaction would be cheerful," said Sameet Chavan, chief analyst for technical and derivatives at Angel Broking.

“Most of the exit polls are predicting the continuity of a stable government, which is a positive sign for the markets considering that the overhang of political uncertainty will be out of the way. The continuation of policies and reforms is an added comfort," said Jagannadham Thunuguntla, senior VP and head of research (Wealth) at Centrum Broking.

But after the results, the markets focus will shift back to economy and earnings, he added.

The broader markets that have underperformed this year could start to outperform, said Sanjiv Bhasin, EVP for markets and corporate affairs at IIFL.

Liquidity into Indian markets may come back, he added. Foreign investors had poured in over 30,000 crore in March, pushing the Sensex and Nifty to new highs last month. But so far this month they have been net sellers as election uncertainty and US-China trade war dampened the enthusiasm for Indian stocks.

Many companies like Tata Motors, Canara Bank and Cipla will announce their earnings next week.

Besides, analysts say, the US-China trade related issues, crude oil prices, rupee movement and foreign funds trend would influence trading sentiment. (With Agency Inputs)

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