India’s NSE index rose as much as 2.1 per cent to a record high on Tuesday as investors saw Prime Minister Narendra Modi’s landslide victory in the northern state of Uttar Pradesh as endorsing his economic reform agenda.
Modi’s win, announced on Saturday, strengthened his claim to a second term in national elections in 2019, and investors are betting it will embolden the ruling Bharatiya Janata Party (BJP) to embark on more reforms including launching a national sales tax.
The broader NSE index rose as much as 2.1 per cent to a record high of 9,122.75 points in the first trading session since the election results were announced, surpassing its previous peak of 9,119.20 on March 4, 2015.
But the index then pared some gains and was up 1.5 per cent at 0410 GMT, while the benchmark BSE index was up 1.6 per cent.
Indian markets were closed on Monday for a holiday.
The benchmark 10-year bond yield fell 3 basis points to 6.87 per cent from its previous close, while the Indian rupee strengthened to 66.2400/66.2425 from its 66.60/66.61 close on Friday.
The gains in the rupee prompted the Reserve Bank of India to intervene once it strengthened to around 66.16 per dollar, traders said.
Modi’s victory “is a huge confidence boost for reform and is another step on the way to a story that could place him as one of the most successful reformers in history,” said Simon Quijano-Evans, investment strategist at Legal & General Investment Management in London.
The prime minister’s win should bode well for foreign portfolio investment in India.
Foreign investors have already started returning to the country, having bought a net $1.5 billion in equities and $887.3 million in debt in February, following four consecutive months of net sales. They have remained net buyers in March.
But expensive valuations and caution due to an anticipated/srate hike by the US Federal Reserve this week could temper gains.
Indian shares are trading at a price-to-earnings ratio of 19.85 over the next 12 months, compared with their five-year historic average of 17.8, according to Thomson Reuters data
source : gulfnews
GMT 11:02 2018 Tuesday ,11 December
ASE opens trading on lower noteGMT 15:40 2018 Monday ,10 December
Amman stock market closes trading at JD4.4 millionGMT 19:10 2018 Wednesday ,05 December
Index at Palestine stock market drops by less than one pointGMT 17:58 2018 Sunday ,25 November
Amman stock market wraps up trading at JD2.6 millionGMT 14:24 2018 Thursday ,22 November
Russia’s stock market demonstrates record-breaking figures in 2018GMT 11:45 2018 Tuesday ,20 November
Tokyo stocks close lower as tech issues weigh, Nissan tumblesGMT 15:08 2018 Monday ,19 November
Amman stock market wraps up trading at JD6.1 millionGMT 15:51 2018 Sunday ,18 November
U.S. stocks post weekly losses amid tech shares routMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor