Mumbai: The markets closed firm with the benchmark index surging 838 points at 14,942 levels, its fifth straight day of gains, after the government won a parliamentary confidence vote, boosting its economic reform agenda.
The government’s win averted snap elections and allows it to push on with implementing a controversial nuclear deal with the US.
“The market was euphoric as they expect more flexibility for the government to push forward their economic reform plans,” said Rupa Rege Nitsure, the chief economist with Bank of Baroda.
Prime Minister Manmohan Singh won the backing of 275 members against 256 who opposed his Congress-led ruling coalition in the vote on 22 July.
Leading the pack of gainers among the BSE-30 scrips was Reliance Communications. The counter moved up 12.2% by close. ICICI Bank (11.6%), BHEL (up 10.9%), HDFC (10.9%), Reliance Infra (10.4%) and State Bank of India (10.4%) were some of the other notable gainers.
Among sectoral indices, the BSE banking index was the top gainer that moved up 10%. Karnataka Bank, Yes Bank, Kotak Mahindra Bank, Canara Bank, Allahabad Bank, Federal Bank and Oriental Bank of Commerce logged smart gains besides ICICI Bank and State Bank of India.
(with AFP inputs)