MUMBAI: India’s stock market surged on Friday, touching a new high on hopes that election results next week will usher in a stable government capable of pushing reforms and reviving the flagging economy.

The Bombay Stock Exchange’s benchmark index rose 3.15 percent to hit 23,048.49 points, before trimming some of the gains to close at 22,994.23 points. “The market was cautious over the last few days,” said Alok Churiwala, managing director of brokerage Churiwala Securities.

“But now, the view is that the National Democratic Alliance (NDA) led by the BJP (Bharatiya Janata Party) will be able to form a government without needing any last minute supporters that impinge on government functioning.”

Results in India’s mammoth election are due to be announced on Friday, May 16.

The opposition BJP, led by Narendra Modi, is expected to oust the center-left Congress from power after 10 years. While the BJP is expected to win most seats, it remains to be seen whether it will muster enough support to form a majority to implement structural changes to the stuttering economy.

That uncertainty is prompting some Indian retail investors to stay on the sidelines despite the current market rise, analysts say.

India’s capital markets regulator, meanwhile, said it would review delisting rules, responding to concerns from market participants that current regulations make the process of buying out minority shareholders difficult and expensive.

The proposals unveiled by Securities and Exchange Board of India (SEBI) include allowing companies to offer a fixed price to buy back shares and restricting the trading of their shares after they announce plans to delist.

Delistings in India are currently done through a reverse book-building process, meaning companies set a floor price, but investors can determine at which price they will tender their shares to the company.

Analysts say that effectively means that companies announcing delistings see their shares surge well above the floor price as traders look to profit, making it expensive for companies to buy out minority shareholders. SEBI asked for feedback until the end of the month, which the regulator will take into account in drafting final rules.