MUMBAI: Indian shares extended their rally on Monday after Prime Minister Modi’s party and its allies scored a decisive win in the country’s richest state of Maharashtra.

The NSE Nifty 50 rose 1.32% to 24,221.9 points, while the BSE Sensex gained 1.25% to 80,109.85. The benchmarks logged gains of 2.5% on Friday, their best session since early June.

On Saturday, the Bharatiya Janata Party-led National Democratic Alliance (NDA) won 233 of 288 seats in Maharashtra, home to India’s financial capital of Mumbai. The state has seen multiple regime changes over the last five years after an unclear mandate in 2019.

“Given the emphatic nature of the ruling NDA’s victory, markets will rise further as political instability in one of the most industrialised and economically important states comes to an end,” said Abhishek Goenka, founder and CEO of IFA Global.