"We assured the board that we are in discussions with the Finance Ministry and Sebi. We have placed prudential contingency plans to infuse liquidity, if needed. We hope that everything will go normally on Friday when the election results are announced," RBI Governor Raghuram Rajan told reporters after a meeting of the apex financial institution's central board.

The benchmark BSE Sensex has rallied over 1,500 points in the past five trading sessions and closed at a record on Thursday, while the rupee appreciated to 59.29 against the US dollar, the highest level in more than nine months.
Both the stock and forex markets are expected to remain volatile when votes are counted on Friday.

Finance Minister P Chidambaram had earlier this week asked the regulators to maintain a strict vigil on volatility in the stock markets on the day of the poll results.

Exit polls show the BJP-led National Democratic Alliance is set to form the government.

While the authorities have already been monitoring stock movements very closely over the past few days, when the markets surged to record highs on three consecutive days, they are now mainly focused on tackling any possible shocks on Friday and on Monday.
The stock exchanges will open on Friday for trading at the regular time of 9:15 am and close at 3.30 pm. They are closed on Saturday and Sunday.
Rajan said the food prices were still a concern and the challenges before the new government would be to deal with inflation, in addition to reviving economic growth and containing the fiscal and current account deficits.


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