BENGALURU, June 4 (Reuters) - Indian shares are likely

to open higher on Tuesday as counting of votes in the recently

concluded elections were set to begin, led by banks and

infrastructure stocks, which analysts said would benefit if

Prime Minister Narendra Modi returns to power.

The Gift Nifty was trading at 23,575 points as of

7:00 a.m. IST, indicating that the Nifty 50 will open

higher than its Monday close of 23,263.90.

The Nifty 50 and S&P BSE Sensex jumped as much as

3.5% on Monday, hitting record highs after exit polls projected

the Bharatiya Janata Party-led National Democratic Alliance will

likely get a two-thirds majority in the lower house.

The benchmarks logged their best session in nearly 40

months.

The counting of votes will begin at 8:00 a.m. IST.

Public sector enterprises, state-run banks

, infrastructure stocks and realty

stocks surged between 5%-8% on hopes of policy continuity,

analysts said.

The benchmark indexes have grown by a little more than three

times in value since Modi became prime minister of the country

in May 2014.

India's volatility index eased to a two-week low

on Monday after the exit polls, indicating less uncertainty

regarding the outcome than feared, analysts said.

They expect the rally to continue for a few more sessions.

The rally is anticipated to sustain in-line with the

magnitude of the actual tally, as inflows which were sitting on

the sidelines in the last 3 months pour in, said Vinod Nair,

Head of Research, Geojit Financial Services.

Banks and Financials, which rose 4%,

each to record highs on Monday, will also be major beneficiaries

of the higher private capital expenditure, analysts said.

The improvement in corporate balance sheet strength and

improved banking system will ensure double-digit returns in

Indian equities over the next two-three years, Axis Securities

analysts said.

State Bank of India, Bank of Baroda, REC

, NTPC were among the top picks of the

brokerage.

Foreign investors net bought shares worth 68.51 billion

rupees ($824.4 million) on Monday, while domestic institutional

investors purchased 19.14 billion rupees in stocks, as per

provisional exchange data.

($1 = 83.1020 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru; Editing by Varun H K)