News

India's Stock Markets Surge With Expected Political Stability

India 's stock markets surged by more than 17 percent as concerns about possible political uncertainty were put to rest following a decisive victory by the ruling Congress-led alliance in general elections. 

There was widespread expectation that stock markets would rise after election results on the weekend saw the Congress Party led alliance defy forecasts, and win enough seats in parliament to form a stable, coalition government.

But few had anticipated the massive surge that took place within minutes after stock markets opened.  The benchmark Sensex shot up by 17.24 percent to 14,272 points.  Trading was halted after the unprecedented rise, the first time ever due to an upward swing. 

Economist Saumitra Chaudhuri, at domestic rating agency ICRA, says the stock markets are reflecting optimism that a clear cut verdict for the Congress-led alliance will boost economic growth.  Chaudhuri has been a member of the prime minister's economic advisory council.

"The impact of this election on this government will be a big positive.  A big positive because not only has the government been returned to power, and we know its policies are geared toward economic progress and development, but also it has a near majority on its own which will make it less amenable to support from outside," he said.

Hopes are especially high because the Congress Party led alliance will not be propped up by left leaning parties, during its second term in office.  Communist parties, which gave crucial support to the government in its last term, were trounced in these elections.

During the past five years, these parties had stalled many reforms such as opening up the retail and insurance sector to greater foreign investment.  

Saumitra Chaudhuri says the government will now have a free hand to implement key reforms, and this will help to attract more investment, which could drive growth.

"In many areas where there was a policy, but because of all the cumbersomeness of the last governmental arrangement, progress was not made fast enough," said Chaudhuri.  "For example public-private partnership in infrastructure, the pace of projects there will speed up, so you will get much more investment on the ground."

India 's economy rose at nearly nine percent for four years, until 2008, when it slowed following the global recession.  But economists say India is already showing some signs of a recovery. 

Prime Minister Manmohan Singh has submitted the resignation of his government to the president, paving the way for the formation of a new government led by him later this week. 

 

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs