Sensex Jumps 400 Pts; Further Reform Hopes

The BSE Sensex gained 2.3 per cent in early trading, while the Nifty rose 2.5 per cent. India formally opened its supermarket sector to foreign chains and eased foreign investment rules in airlines and broadcasters, the government said on Thursday. Pantaloon Retail India rose 7.1 per cent, while Trent was up 3.6 per cent.

 

Despite the current political instability, investors are hoping the government will go through with reforms and that the pace will continue. Indian financial companies with insurance units surged on hopes the government will increase the foreign direct investment limit to 49 per cent from 26 in insurance companies at its next cabinet meeting.

 

Reliance Capital rose 8 per cent, while Max India was up 5 per cent. State Bank of India was up 4.3 per cent, while ICICI Bank gained 5.3 per cent.

 

(Reuters)