India's Market Goes Wild
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.
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