India’s stock market surged an unprecedented 17 per cent, forcing trade to close for the day, after the Congress party’s victory in national elections set the scene for long-delayed economic reforms.
Within seconds of opening, the Bombay Stock Exchange’s benchmark Sensex vaulted 2,110.79 points, or 17.3 per cent, to 14,284.21, triggering the historic shutdown yesterday.
Infrastructure, banking and real estate companies led gains.
The Congress-led alliance unexpectedly captured 261 seats in India’s 543-seat parliament — one of the most crushing electoral victories in nearly two decades of fractious coalition politics.
Putting to rest fears of an unwieldy coalition, the victory raised hopes of a revival in foreign direct investment and economic growth, as well as tax reform and significant infrastructure spending.
The National Stock Exchange, India’s smaller second exchange, was also closed after its Nifty 50 index gained 651.5 points, or 17.7 per cent, to 4,323.15.
