Indian Prime Minister Narendra Modi is expected to return to power at the head of a coalition government, with exit polls on May 19 showing Modi's National Democratic Alliance party in line to win a majority of seats in India's parliament, according to news reports.

Reuters reported May 19 that Modi's party is projected to win 287 seats in the 545-member lower house of parliament, compared to 128 seats for the next closest party, based on exit polling from CVoter. The election results are expected to be finalized on May 23.

The anticipated election results are expected to have a significant impact on domestic financial markets, with Indian equity markets likely to strengthen on May 20, Reuters said, citing market observers.