Use access key #2 to skip to page content.

India's Market Goes Wild



May 18, 2009 – Comments (11) | RELATED TICKERS: EPI

India's Prime Minister Manmohan Singh’s Congress Party won a resounding victory in the country's elections yesterday. It cure looks like Mr. Market liked it.  Check out this move. The country's benchmark stock index jumped a record 17% percent. The The Sensex is now up an astounding 48% year-to-date (one has to wonder if it has gotten ahead of itself a little bit). The gain was so powerful that the Bombay Stock Exchange was actually forced to shut down for the rest of the day.

Could you imagine a move like that in the U.S? That's wild stuff.

Stock of ICICI Bank jumped by a record 25% and shares of Tata Motors exploded to the upside by 15%, its largest gain in 16 years.

India's bonds rose and currency (the rupee) rose by the most in 20 years as well.

The ruling Congress party now holds the most seats since 1991. Many believe that they now may be able to further reduce barriers to foreign investment in insurance, pension fund management and retailers, plans that had been frustrated by communist lawmakers.

One analyst, Samir Arora of Helios Capital Management, believes that Indian stocks could rise another 20% over the next week.

Wow. I wish that I had known about this beforehand, I could have made a killing. I suppose that no one expected such a resounding victory for the Congress party though otherwise we wouldn't be seeing action like this.

India Stocks, Rupee, Bonds Surge on Congress Win; Shares Halted

Singh’s ‘Game Changer’ Win to Unlock India Economy; Shares Soar


11 Comments – Post Your Own

#1) On May 18, 2009 at 6:27 AM, portefeuille (98.93) wrote:

I was earlier (haha. see comment #6 here)! Good morning to you.

Report this comment
#2) On May 18, 2009 at 6:35 AM, portefeuille (98.93) wrote:

... but I ended my IBN "outperform" call on May 13 ... stupid portefeuille!

Report this comment
#3) On May 18, 2009 at 7:35 AM, TMFDeej (97.65) wrote:

I just laughed when I realized what I said to myself when I saw the move in the Indian markets.  With two small children around the house, I have been trying to refrain from cursing.  I have replaced any four letter words in my vocabulary with lame expressions like "Holy Cow."  What a great headline that would have made for an article about India:

"Holy Cow!  India's Market Goes Wild"

HA.  Get it, cows, India, Hinduism...Darn that lack of edit button.  Oh well, someone may have somehow found that offensive anyhow.


Report this comment
#4) On May 18, 2009 at 7:38 AM, TMFDeej (97.65) wrote:

Report this comment
#5) On May 18, 2009 at 8:20 AM, portefeuille (98.93) wrote:

IFN in pre-market trading: 25.75, +4.16 (+19.27%)

Report this comment
#6) On May 18, 2009 at 9:06 AM, catoismymotor (< 20) wrote:


I was moooved my your blog. Like you I am udderly shocked that the results of this election cud sway their market like that. One day I would like to hoof it over there to see the country with my own eyes.  You know, see the holstein for myself.

Cheesily yours,


PS - Seriously, I do appreciate the blog. It was guda of you to write it.

Report this comment
#7) On May 18, 2009 at 9:08 AM, Gemini846 (34.25) wrote:

Hmm. I wonder if the emerging markets fund in my 401k caught any of the wave. Of course thier quotes are more delayed than TMF so I won't know till Tuesday.

Report this comment
#8) On May 18, 2009 at 9:48 AM, TMFDeej (97.65) wrote:

HA.  Good stuff Cato.  India certainly is in the middle of a "bull" market right now.  MWHAHAHAH.


Report this comment
#9) On May 18, 2009 at 2:12 PM, portefeuille (98.93) wrote:

An Indian FAZ (3x short ETF on Indian Financials) would have been almost wiped out today ("saved by the bell" (i.e. the curbs), but otherwise, who knows ...).

Report this comment
#10) On May 18, 2009 at 4:54 PM, catoismymotor (< 20) wrote:

At the end of the trading day everyone joined in a spontaneous musical and dance number.


Report this comment
#11) On May 18, 2009 at 7:49 PM, outoffocus (23.81) wrote:

Well that MTE investment I made a year ago is looking alot smarter now.

Report this comment

Featured Broker Partners