Indian Markets Up 20 Percent on Election Results
MUMBAI, May 19 – The Indian business community reacted strongly to the national election results yesterday, sending the primary Sensex up over 2,000 points to close at 14,284. In unparalleled scenes, the markets rose in just two minutes worth of trade before the exchange was forced to bring an end to the session as the daily market had already reached its cap. Analysts predict a rise to well over 15,000 when today’s trading opens.
India’s stock markets are limited to 10 percent movement barriers in each trading session, with a maximum of two sessions per day. Major market players suggest the market might gather momentum in coming sessions amid picking up of capital inflows by foreign funds, in signs that India is becoming a hot spot for foreign funds.
The election results turned a 20-year hiatus of horse trading and political compromises over reform and development in a variety of coalition governments into a clear mandate for the pro-business Congress Party.