Share prices on India's benchmark stock index surged 17 per cent yesterday – recording their biggest one-day gain in almost two decades – as investors reacted euphorically to the Congress party's election victory.
The gains on Bombay's Sensex index, fuelled by hopes that the weekend poll result meant renewed stability and a strong economic reform agenda, were so great that trading had to be suspended for the day. The index of 30 stocks rose to 14,273.
Indian business leaders applauded the Congress victory, saying it would lead to increased foreign investment. They are lobbying for fresh fiscal measures to help companies weather the global recession, steps to reform pensions and insurance, and swifter action to end the country's long-standing infrastructure problems.