Indian shares hit new peak on foreign buying

Foreign institutional investors buy shares on hopes that a pro-business government would emerge after upcoming vote.

    Indian investors are reportedly backing the BJP, seeing it as more investor-friendly  [AP]
    Indian investors are reportedly backing the BJP, seeing it as more investor-friendly [AP]

    India's benchmark stock index raced to a new record high as foreign investors bought shares on hopes that a new pro-business government would emerge from elections next month.

    The Bombay Stock Exchange's (BSE) benchmark index gained 1.06 percent to touch a lifetime high of 22,040.72 points in Tuesday morning's trading.

    "Foreign institutional investors are buying, expecting the new government post-elections to be a stable and reform focused one," an equity analyst told AFP news agency on condition of anonymity.

    The momentum in markets could last until April with election results in May providing the next set of cues, the analyst said.

    India's Hindu nationalist Bharatiya Janata Party, seen by business as better able to get the economy back on track, is tipped to win the elections due in April-May, defeating the ruling Congress party.

    Growth slackened last year to a decade low of 4.5 percent and the government expects 4.9 percent expansion in this fiscal year to March 31.

    Foreign institutional investors have purchased $7.4 billion in local equities and debt so far in the fourth quarter of the current fiscal year, data showed.

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Why is the West praising Malala, but ignoring Ahed?

    Why is the West praising Malala, but ignoring Ahed?

    Is an empowered Palestinian girl not worthy of Western feminist admiration?

    Blood-rusted Sword: Elite force of Saudi crown prince

    Blood-rusted Sword: Elite force of Saudi crown prince

    Al-Ajrab Sword Brigade, formed in 2015, comprises elite forces from across Saudi military ranks.

    Why some African Americans are moving to Africa

    Escaping systemic racism: Why I quit New York for Accra

    African-Americans are returning to the lands of their ancestors as life becomes precarious and dangerous in the USA.