Indian stock indices closed moderately higher on Wednesday, May 22, extending the uptrend sparked earlier this week by the preliminary election results. To remind, exit polls showed that the Bharatiya Janata Party, an Indian nationalist party led by Prime Minister Narendra Modi, was set to emerge victorious. The final results will be announced on Thursday, with traders having little room for doubt that Modi will remain in office. Investors view this outcome as favorable for economic growth, so stocks are extending gains. Adding to upbeat sentiment was news that the US temporarily lifted restrictions on China’s Huawei, granting it a 90-day license, until August 19, to use US technology. By the close, the Nifty 50 rose 0.25% to 11,737.90, and the BSE Sensex was 0.36% higher at 39,110.21. The USD/INR pair firmed 0.08% to 69.716. The 10-year Indian government bond yield narrowed 0.44% to 7.271%. In the blue-chip universe, IndusInd Bank, Sun Pharma and Bajaj Auto picked up over 2%, while ITC, Yes Bank and Tata Consultancy ended in the red. In the non-banking financial services sector, Dewan Housing Finance tanked 9.6% after ceasing to accept new deposits or prolong the existing deposits. From a technical standpoint, the daily chart shows that the BSE Sensex is consolidating near the resistance level at 39,500 and will likely remain in consolidation mode in the short term.