Tech & Biz

Indian stocks soars after key vote

by Sanjay Jha | July 23, 2008 at 02:16 am

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Stocks market in India have given thumping welcome to government's victory in Parliament. Markets opened sharply today morning as ruling UPA government won trust vote yesterday. Strong US market on the back of fall in crude oil price fulled the rise in the market. Market got strong cue from UPA government's reform agenda. Government has not been able to effectively implement major key economic reforms under pressure from erstwhile ally left parties. Indian stocks have risen by more than 5% after the government won a vote of confidence that could pave the way for key economic reforms

The Bombay Stock Exchange's benchmark Sensex index climbed 5.2% to 14,840.8 points, before slipping to 14,616.91.
The broader National Stock Exchange, rose 4.5% to 4,432.
Officials said the vote would clear the way for the liberalisation of rules on foreign investment in private banks and insurance firms.
As well as ensuring the survival of the ruling coalition, the vote of confidence also paves the way for a controversial civilian nuclear reactor deal with the US.
Indian shares have been fluctuating in recent weeks, prompted by investor fears over inflation and the uncertainty over the survival of the federal government.
"The market never likes uncertainty, so in that sense the end of the political uncertainty has brought in a feel good factor," said Arun Kejriwal, strategist at research firm KRIS.
"The government now has an opportunity to push through some reforms but whether they will actually be able to do it, I am not too sure."