BENGALURU, June 5 Reuters Indian shares rose in volatile trading on Wednesday, as investors digested a narrow win for Prime Minister Narendra Modi39;s alliance and awaited more updates on the new government39;s formation.

The NSE Nifty 50 index was up 2.2 at 22,372 points as of 1126 a.m. IST, and the SP BSE Sensex was up 2.1 at 73,673. The indexes fell 0.42 and 0.26 earlier in the session.

Modi39;s Bhartiya Janata Party lost its outright majority in parliament in a surprise election verdict, although the National Democratic Alliance led by the party won 293 seats, more than 20 ahead of the 272 needed to form a government.

The benchmark indexes closed nearly 6 lower on Tuesday.

The markets will remain choppy till the government is finally formed and key portfolios are allocated, said Neeraj Dewan, director at brokerage Quantum Securities.

Foreign institutional investors FIIs sold a record 124.36 billion rupees about 1.5 billion worth of Indian shares on Tuesday, provisional data from the National Stock Exchange showed.

Until we have an idea about the policies of the new government, we may see some sector rotations, with defensive sectors like information technology and consumer goods doing better, Dewan said.

Consumer goods stocks surged 6 to a record high, while auto stocks gained 4.2 on expectations of rural demand. IT stocks were up 2.5.

Twowheeler maker Hero MotoCorp jumped 8 and was the top gainer in the Nifty, while consumer giant Hindustan Unilever surged…