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Forex Warrior
Indian Stock Exchange halted after 17% surge
May 18 (Bloomberg) -- India benchmark stock index posted a record gain, prompting exchanges to halt trading for the rest of the day, after Prime Minister Manmohan Singh’s election victory. The rupee jumped the most in two decades and bonds rose.
The Bombay Stock Exchange extended its suspension for the rest of the session for the first time ever, shortly after a two-hour halt ended at 11:55 a.m., according to the stock exchange Web site. The Sensitive Index, or Sensex, had surged 2,099.21, or 17 percent, to 14,272.63.
“Markets are euphoric,” said Rahul Chadha, the Hong Kong- based head of Indian equities at Mirae Asset Global Investment, with $46 billion in global equities. “The focus by federal and state governments on development will lead to a structural re- rating of India.”
Singh’s ruling Congress party won its most seats since 1991. The victory will enable the party to start forming a new government today without needing the support of communist lawmakers, who frustrated plans to entice foreign investment and sell state-owned companies in his first five-year term.
Under exchange rules, trading closed for the day at both exchanges because the Sensex jumped 2099.21 points while the S&P CNX Nifty index jumped 636.40 points. The Nifty climbed 17 percent to 4,308.05. The markets were halted for the first time ever after breaching an upper limit.
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