The main stock market leapt by nearly 15 percent on Monday, triggering a temporary trading halt, after the ruling coalition sealed a decisive election victory that calmed fears of political uncertainty.
The Indian rupee gained by moving more than two percent to four-month highs against the dollar while the benchmark bond yields fell as the win boosted hopes a strong coalition would be able to push through economic reforms that would boost the much needed foreign investment in the country.
The investors and market analysts are upbeat and believe that the Congress-led UPA government will push the reforms needed to boost the economy in times of recession and will provide a stable government.
The Indian rupee gained by moving more than two percent to four-month highs against the dollar while the benchmark bond yields fell as the win boosted hopes a strong coalition would be able to push through economic reforms that would boost the much needed foreign investment in the country.
The investors and market analysts are upbeat and believe that the Congress-led UPA government will push the reforms needed to boost the economy in times of recession and will provide a stable government.
The investors are hopeful that the Congress led UPA will now fast track the process of economic reforms without any pressure, which in turn will boost the economy.
The picture is completely different in today's scenario. The new government will be without the Lefts' support. So the reform bills in the insurance, foreign direct investment and banking sector which had been blocked by the Left will now be tabled and passed in the parliament, which is very good for the overall economy and from the market point of view.
