Indian stock market surges on decisive vote resultMay 18th, 2009 - 6:28 pm ICT by ANI
Mumbai, May 18 (ANI): India’s main stock market is booming after the people gave a thumping mandate in favour of the Congress-led United Progressive Alliance (UPA) in the Lok Sabha polls, dispelling fears of a fractured mandate.
The main stock market leapt by nearly 15 percent on Monday, triggering a temporary trading halt, after the ruling coalition sealed a decisive election victory that calmed fears of political uncertainty.
The Indian rupee gained by moving more than two percent to four-month highs against the dollar while the benchmark bond yields fell as the win boosted hopes a strong coalition would be able to push through economic reforms that would boost the much needed foreign investment in the country.
The investors and market analysts are upbeat and believe that the Congress-led UPA government will push the reforms needed to boost the economy in times of recession and will provide a stable government.
“I am overjoyed for the simple reason that we have been facing a lot of problems for the last two years when the market was down. The government has come with a thumping majority and the government will come up with further reforms. They will come up with banking reforms, they will come up with infrastructure benefits, and they will come up with public sector divestment. So the overall trends for the long term market are bullish, because the government will rule for five years,” observed Manish Debrawal, a Market Expert.
The investors are hopeful that the Congress led UPA will now fast track the process of economic reforms without any pressure, which in turn will boost the economy.
“When in 2004 the UPA government was formed with the Left Front support, then because of the Leftists, the markets had fallen by over 800 points. The picture is completely different in today’s scenario. The new government will be without the Lefts’ support. So the reform bills in the insurance, foreign direct investment and banking sector which had been blocked by the Left will now be tabled and passed in the parliament, which is very good for the overall economy and from the market point of view,” opined Siddharth Kuwala, an investor. (ANI)
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