Indian equities rallied the most in a month as vote-counting from elections in a key southern state showed Prime Minister Narendra Modi’s Bharatiya Janata Party leading over the main opposition.
The S&P BSE Sensex rose 1.1 percent to 35,933.62 as of 10:19 a.m. in Mumbai, set for the biggest advance since April 5. The gains damped price swings, with the India VIX tumbling 11 percent.
The BJP was leading in 105 seats in the 224-member Karnataka assembly and is seen emerging as the single largest party, as per NDTV 24X7 projections. The Congress party, which has governed the state for the last five years, was ahead in 69 seats. Janata Dal (Secular) — a regional party led by former Prime Minister H.D. Deve Gowda — is ahead in 46 seats in the state, which has a population equivalent to that of France.